Corporation tax rate to remain at 19%. This is a reversal of the increase to 25% from 6th April 2023. (Update the rate remains at 25%) A reward to businesses which create jobs and goods and services. This is the lowest in the G7 and among the most competitive non-tax haven rates.
Shareholders who get paid dividend have the rate at basic band reduced from 8.75% back to 7.5%.( rate remains at 8.75%) A great incentive to entrepreneurs who own and manage their own business using Limited company structure. Great for non-resident investors whether individual or company who receive the dividend without deduction of withholding tax on dividend. A great incentive to invest in UK companies and businesses .
Infrastructuredevelopments of Freetrade zone and Investment zones, with various time limited tax incentives. (Remains)
Limits increased for employee Company share ownership schemes and Seed Enterprise investment scheme. This will attract and retain global talent and attract investors in UK businesses.
Annual Investment Allowance in plant and machinery between £200,000 to £ 1,000,000 made permanent. 100% tax Allowance.
Migration rules changes to attract skilled staff to fill shortage in certain roles. Global talent can relocate to the UK.
100 new Oil and gas licenses to be issued to ensure supply of oil and gas in the UK ??. Oil and gas fracking might be controversial environmentallly, however if UK Oil and Gas supplies can be secured, even if these will be sold at global market prices in the UK ??, these profits will be retained in the UK ??, the balance of payments strain to pay foreign countries for oil and gas will be eliminated or reduced, strengthing the GBP and the dependence on foreign countries for our supply of Oil and gas will be eliminated.
Investment Zones
There are investment zones proposed with significant tax incentives. Investment Zones will comprise both Commercial , industrial and residential development in the designated area. This will lead to a more buoyant construction sector, leading to development of both commercial, industrial and residential development in and around these investment zones.
In the West Midlands the investment zone is proposed to be in the Solihull area of Birmingham, close to the Birmingham International Airport and the HS 2 (High speed rail) Terminal. From their to London it is going to be 38 minutes.
To Learn more about Investment Zones in the UK.
Click the link
Freeports
Freeports operate as secure customs zones, usually located at ports or airports, where business can be carried out inside a country’s land border, but where different customs rules apply.
Countries around the world had adapted this basic model by adding different elements to create their own bespoke Freeports based on the Special Economic Zone (SEZ) concept. Each combines a mixture of customs flexibilities, to provide relief from duties, import taxes and administrative burdens; tax measures to incentivise private investment; regulatory flexibilities; and investment in infrastructure, all concentrated in the geographical area around the Freeport.
The UK Government has opted for a bespoke Freeport model which aims to achieve three objectives:
- To establish Freeports as national hubs for global trade and investment across the UK.
- To promote regeneration and job creation
- To create hotbeds for innovation
The successful Freeport bids in England are East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth & South Devon, Solent, Thames and Teesside. - Conclusion
The free ports and investment Zones, regulations and tax incentives which will come with them. We look forward to the tax measures (time limited) for companies . It has been prefential free trade areas or zones which have made cities/states like Dubai (UAE), Singapore and Mauritius trading giants. The United Kingdom has historically grown to be a global power due to trade, which it needed to protect using its Navy, which enabled it to become a great Global power. Furthermore , the UK has the Financial services infrastructure (banks, insurance companies and money transfer systems) to support global trading of commodities, industrial goods and services. In addition it has a great legal and arbitration system to resolve disputes arising from trade contracts.
The UK under the leadership of His Majesty King Charles III is likely to develop and strengthen relationships of trade and finance amoung Commonwealth countries. The ties of the British Crown with the Commonwealth was emphasised during the the Funeral of her Majesty Queen Elizabeth II. The free trade agreements with Commonwealth countries should be aggregated into a Commonwealth wide Free Trade Common market. - Below is link of UK- Kenya free trade agreement.
https://www.gov.uk/government/news/uk-kenya-economic-partnership-agreement-enters-into-force - My sincere hope would be that the entire Commonwealth becomes a free trade area or common market.
These are great opposrtunities for the business community in the UK. I believe we as humans need positive reinforcement to change behaviour. We need more businesses to enable more of our people have jobs. These measures will create a positive virtuous circle ? leading to Growth of the UK economy. The GBP will become more competitive as our balance of payments position will improve. I have a feeling ? we will have a more productive and prosperous United Kingdom. I pray for a golden era under the stewardship of the Golden Lady Liz Truss.
