Capital Allowances
The Chancellor extended the 100% first year allowances for zero emissions cars and electric charge-points to 31 March 2026 for Corporation Tax and to 5 April 2026 for Income Tax.
Corporation Tax
The government has published a Corporate Tax Roadmap, which includes
- A commitment to cap the Corporation Tax Rate at 25%;
- Maintain the Small Profits Rate and marginal relief at current rates and thresholds; and
- Maintain key features such as Full Expensing, the Annual Investment Allowance, R&D relief rates, and the Patent Box.
The Roadmap also outlines areas for further exploration including a new process for advanced assurance for major projects and simplifying and improving tax administration and can be found here Corporation Tax Roadmap.
Business Rates
The small business multiplier will be frozen at 49.9% for 12 months from 1 April 2025.
- Small Business Relief is available for businesses with one business property with a rateable value less than £15,000;
- Full relief applies if the property is worth less than £12,000; and
- For property between £12,000 and £15,000, partial relief is available.
For businesses with more than one property, relief may be available on the main property if no properties have rateable value over £2,899 and the total rateable value of all properties is less than £20,000.
For businesses occupying eligible property in the Retail, Hospitality and Leisure sectors, a 40% business rates discount will apply from 1 April 2025, up to an annual cash cap of £110,000 per business.
Umbrella Companies
The government has announced plans to tackle non-compliance where workers are supplied by umbrella companies.
From April 2026, recruitment agencies will be legally responsible for accounting for PAYE on payments made to workers supplied by umbrella companies. Where there is no recruiting agent involved the responsibility will fall on the end client itself.
