Value of UK business tax breaks hits record £105bn in past year alone
- On November 16, 2022
- By GrowthInvest Marketing
The value of business tax reliefs in the UK hit £105.3bn in the past year, up from £100.3bn in 2020-21, shows new research shared with City A.M. this morning.
The £105.3bn figure represents the combined cost estimated by HMRC for the 58 significant tax reliefs available to corporates.
However, these represent just a fraction of the hundreds of tax breaks that are available to UK corporates. The value of many of these is deemed to be so low as to be negligible, according to the data by Thomson Reuters.
Making full use of tax breaks will become even more important for UK corporates, which are preparing for an increase in their tax liabilities due to the proposed jump in corporation rate.
The Government announced in the 2021 Spring Statement that the rate of corporation tax would increase from 19 per cent to 25 per cent for businesses with annual profits greater than £50,000 from April 2023.
This is projected to bring in an additional £22bn of revenue for the Treasury, with corporation tax receipts estimated to increase from £48.8bn in 2022-23 to £71.3bn in 2023-24.
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