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News release

Response to Chancellor’s Emergency Statement – Head of Tax

Karen Campbell-Williams, Head of Tax at Grant Thornton UK LLP responds to the Chancellor’s Emergency Statement.

“Following the mini-Budget last month, we asked 605 businesses leaders* which of the tax policy changes announced would be most beneficial to their business. The most popular measures were:

  • changes to the thresholds for SEIS
  • reversal of the rise in National Insurance Contributions and cancellation of the Health and Social Care Levy from April 2023
  • doubling of the Company Share Option Plan limit.

“It’s therefore encouraging to see that these three measures will remain.

“The reversal of the recent changes to off-payroll working rules (IR35) would have simplified things for businesses and helped to open-up the labour market (1 in 4 businesses we surveyed felt these suggested changes would benefit their business). However, the U-turn on this measure, deciding to keep IR35 changes in place, will remove the need for many of the administrative and process changes made over the last few years to be unpicked. Longer term, our survey showed that business leaders most want to see:

  • simplification of UK business tax system
  • incentives for employers to invest in skills attraction and development
  • support for international trade.

“It will be interesting to see, as more details of the new Chancellor’s plans unfold, whether the government will choose to adopt an approach similar to that outlined previously by Rishi Sunak, who argued that combining increased relief for capital investment alongside an increase in the main corporation tax rate would be better targeted at increasing investment.”

* Censuswide on behalf of Grant Thornton UK LLP surveyed 605 senior decision makers from UK mid-market businesses between 29 September and 10 October 2022.

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