Commenting on today’s Autumn Statement, Chris Morgan, Head of Tax Policy at KPMG in the UK, said:
“Today’s Autumn Statement wasn’t quite an early Christmas present but certainly not a turkey as far as business is concerned. Good news is that there was little tinkering around the edges and some welcome targeted measures to provide relief. In particular these are the capping of business rates with specific reliefs for small retailers, the removal of employers’ National Insurance Contributions on workers below the age of 21, an extension of film tax reliefs and some targeted allowances for the oil and gas sector.
“As shown in our recent survey, changes to the UK’s corporate tax regime to make it more competitive are now bearing fruit and government figures today support this, suggesting that the recent reductions to the main and small profits rate of corporation tax should increase business investment by between 2.5% and 4.5% in the long term. However, it’s a shame that the Chancellor again passed up the opportunity to introduce tax relief on capital investment which is a measure that many businesses have called for and is arguably the remaining missing piece in the jigsaw to completely transform our corporation tax regime.”
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