The Government has published its draft 2023/24 Finance Bill, following the Autumn Statement on 22 November 2023, which will eventually be enacted as Finance Act 2024.
See our previous article: Full Expensing: the new capital allowance
Permanent full expensing, the successor to the super deduction, allows companies to deduct 100% of the cost of a wide range of plant and machinery – such as lorries, drills and office chairs - from their profits before tax.
Chancellor Jeremy Hunt announced other measures in his Autumn Statement which are featured in the Bill, including:
The majority of tax changes in the Bill take effect from April 2024.
The Bill received its first reading in Parliament on 27 November 2023 and will follow the normal passage through Parliament, and received its second reading in the House of Commons on 13 December.
The changes to National Insurance, which will take effect on 6 January 2024 for employees and 6 April for self-employed people, are being legislated through a separate Bill - The National Insurance Contributions (Reduction in Rates) Bill.
The Bill completed its remaining House of Lords stages on 12 December 2023.
The Scottish and Welsh Budgets will both be published on 19 December 2023.
If you would like to discuss how these changes in tax policy may affect you and/or your business, please contact your usual Bishop Fleming advisor.