Corporation tax rates
The main rate of corporation tax will remain at 25% and the small profits rate will stay at 19% for the financial year starting 1 April 2025.
Extending full expensing to leased assets
Currently, leased assets are excluded from both full expensing and the 50% first-year allowance for special rate assets. The government will shortly publish draft legislation on which it will consult about any potential extension of these reliefs to plant and machinery for leasing.
Business rates
The empty property relief ‘reset period’ will be extended from six weeks to 13 weeks from 1 April 2024 in England. The government will also consult on a General Anti-Avoidance Rule for business rates in England.
Eligible film studios in England will benefit from a 40% relief from business rates for ten years from April 2024.
Additional support for independent film
Additional support for independent films will be given via the audio-visual expenditure credit (AVEC). The independent film tax credit is aimed at films that have budgets (or total core expenditure) of up to £15 million and that receive a new accreditation from the British Film Institute. The credit rate will be 53% of qualifying expenditure.
Qualifying expenditure is capped at 80% of a film’s total core expenditure with an upper limit for a film of £6.36 million. The changes will take effect for films that start principal photography from 1 April 2024 on expenditure incurred from 1 April 2024.
Expenditure on visual effects
Additional tax relief under the AVEC will be given to the costs of visual effects in films and high-end TV. These costs will receive a tax credit at a rate of 39%. The 80% cap on qualifying expenditure will also be removed for visual effects costs. The changes will take effect from 1 April 2025. The government will consult on the types of expenditure that will be within the scope of the additional tax relief.
Theatre tax relief, orchestra tax relief, and museums and galleries tax relief
The rates for theatre tax relief, orchestra tax relief, and museums and galleries exhibition tax relief will be permanently set at 40% for non-touring productions and 45% for touring and orchestral productions from 1 April 2025.
Energy profits levy
The end date of the energy profits levy will be extended to 31 March 2029.
Freeport tax reliefs
The window to claim the tax reliefs available in Freeport special tax sites will be extended from five to ten years, namely to 30 September 2031 for English Freeports and 30 September 2034 for Scottish Green Freeports and Welsh Freeports.
Deductibility of training costs
HMRC has published guidance to provide greater clarity about the tax deductibility of training costs for sole traders and the self-employed. The guidance clarifies that updating existing skills and keeping pace with technological advancements or changes in industry practices are deductible costs when calculating the taxable profits of a business.
Landfill tax rates
The standard and lower rates of landfill tax will rise in line with the RPI, which will be adjusted to take account of high inflation in the period 2022 to 2024 and will be rounded up to the nearest five pence. The change will take effect from 1 April 2025. Landfill tax is devolved to the Scottish Parliament and Welsh Assembly.
Economic crime levy
The government will increase the charge paid by very large businesses that have UK revenue of over £1 billion and are regulated for anti-money laundering under the economic crime (anti-money laundering) levy. The charge will rise from £250,000 to £500,000 a year, from tax year 2024/25.