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#COVID has hit the economy in every way one can imagine. With debt escalating, the unemployment rate rising, 'teething issues' resulting from #Brexit and uncertainty around investments in the UK, the UK looks to be standing on shaky grounds for decades to come.
Today, the #Chancellor of the Exchequer, Rishi Sunak, delivered what some may feel is an exciting step to build a "better future economy". The Budget considered a wide range of matters. From business rate, duty, income tax threshold, corporation tax rates, and new investment initiatives, all aimed at lifting the UK's economy.
The #Chancellor wanted this Budget to grow the economy and balance the debt sheet that we have.
Apart from the standard tax rates and business rates, there are some announcements that investors and entrepreneurs will carefully look at with interest in the days to come as details of the #Chancellor's Budget continue to unfold.
In particular, the Chancellor announced the following:
Corporation Tax Increase to 25% (against the current 19%) but only for those with gross profits of £1 million or more. Startups and small business will continue to enjoy the corporation tax rate of 19% and a taper rate for companies with profits between £50,001 to £1 million. The corporation tax rate will increase for those affected from April 2023.
A business may claim tax relief on losses for up to 3 years rather than those that may do so for the current tax year.
"Super Tax Reduction" for firms that invest to enjoy a reduced tax bill by 130% rather than the current rate of around 26%.
Introduction of an '#Infrastructure Bank' in Leeds UK focusing on investment in Public and Private projects. A £12 billion budget has been reserved for this purpose. The intent is for Leeds to be the leader for the voluntary, high-quality carbon offset market.
Further investments in Ports in Teeside and Humberside.
Special Economic Zones to be introduced at eight ports at East Midlands airport, Liverpool, Felixstowe, Humber, Plymouth, Thames, Teesside, and Solent.
World-leading sovereign green bond.
While many within parliament are not in favour of the Budget and felt that the Budget had not gone far enough to solve the UK's headwinds, the central message sent by the #Chancellor certainly appears to be that of an open Britain.
The key message is simple. The UK is open for business (in fact, every corner of the UK). From Scotland to Wales to Northern Ireland to England, every town and city will be centrally supported by the Government to attract investments into the UK and build a successful post-#brexit and post-#COVID Britain.
Setting aside the financial aspect of the Budget, the Chancellor acknowledge the need to attract the 'best and the brightest', further reiterating the opening up of the UK immigration system. The Chancellor has committed and confirmed that the hotly anticipated non-sponsored Highly Skilled programme would be introduced soon to go inline with the various budget announcements to bolster UK's position as the world's "technology leader".
The announcement of this route (finally) is no longer an off-the-cuff policy as before, but a firm confirmation that it will happen 'shortly'.
Investors, entrepreneurs and businesses should undoubtedly look at the UK as the next destination for investment and their staff to come to the UK. With key incentives, new central infrastructure plans, #SEZ, tax cuts and easements of immigration routes, the UK may finally earn herself the self-proclaimed reputation of a 'Global Britain'.
Shores & Legal are experienced and expert immigration partners for your business and personal immigration requirements. We help companies and individuals identify an appropriate immigration strategy to succeed in the UK. If you wish to discuss your UK immigration requirements, contact us at +44 (0) 207 097 6778 or info@shoreslegal.com.
This article is not intended to provide, promote, or offer any tax advice, offerings or services. Should any reader requires tax or financial advice, please contact your tax provider or financial advisor. Shores & Legal also work with several vetted partners whom we can signpost you to.
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