WD + Co Autumn Budget Summary 2021 - Flipbook - Page 10
Businesses incurring expenditure on plant and
machinery should carefully consider the timing of
their acquisitions to optimise their cashflow. In
2023 the tax relief rules for expenditure on plant
and machinery will change and for companies the
percentage corporation tax relief saving on the
expenditure may change as well.
Structures and Buildings
A Structures and Buildings Allowance (SBA) was
introduced with effect from 29 October 2018 to
relieve costs for new structures and buildings used
for qualifying purposes. A business must hold an
allowance statement containing certain information to
be eligible to claim SBA. Minor changes will be made
to the allowance statement requirements to clarify the
information required to be kept.
Annual Tax on Enveloped Dwellings
The Annual Tax on Enveloped Dwellings (ATED)
charges increase automatically each year in line with
inflation. The ATED annual charges will rise by 3.1%
from 1 April 2022 in line with the September 2021
Consumer Price Index.
Residential Property Developer
A new tax will be applied from 1 April 2022 on
company profits derived from UK residential property
development. The tax will be charged at 4% on profits
exceeding an annual allowance of £25 million. For
companies that are part of a group, the £25 million
allowance will be allocated by the group between
The government has announced that it will
temporarily increase cultural tax reliefs for theatres,
orchestras, museums and galleries across the UK
from 27 October 2021 to 31 March 2024, increasing the
relief organisations can claim as they invest in new
productions and exhibitions.
Changes will also be introduced to better target the
cultural reliefs and ensure that they continue to
be safeguarded from abuse. These will apply from
1 April 2022.
Research and Development relief
Research and Development (R&D) tax reliefs for
companies will be reformed to:
• support modern research methods by expanding
qualifying expenditure to include data and cloud
• more effectively capture the benefits of R&D funded
by the reliefs through refocusing support towards
innovation in the UK
• target abuse and improve compliance.
These changes will take effect from April 2023.
Cross-border group relief
Following the UK’s exit from the European Union
(EU), the government is bringing the corporation
tax group relief rules relating to European Economic
Area (EEA) resident companies into line with those
for non-UK companies resident elsewhere in the
world. This applies to accounting periods ending on
or after 27 October 2021 and will affect UK groups with
subsidiary companies established in the EEA along
with EEA-resident companies that are trading in the
UK through a permanent establishment.