In its 2021 autumn budget, the UK announced business rate changes, including new relief for property improvements and green technology. The UK also announced temporary business rate relief for eligible retail, hospitality, and leisure businesses, among other changes.

Highlights from the UK's autumn budget that may be of interest to multinational businesses who operate in the UK, include proposed measures to:

  • Temporarily reduce business rates for eligible retail, hospitality and leisure businesses (up to £110,000 per business) and introduce a freeze in the business rates multiplier (for 2022/23)
  • Introduce business rate relief for investments in green technology and eligible property improvements and increase the frequency of business rate revaluations to three years (as of April 1, 2023)
  • Expand qualifying R&D expenditures to include data and cloud-computing costs and refocus support on innovation in the UK, effective April 1, 2023
  • Extend the temporary £1 million annual investment allowance to March 31, 2023
  • Reduce the banking surcharge rate to 3% (from 8%), effective April 1, 2023 and increase the annual allowance for groups to £100 million (from £25 million)
  • Introduce a new 4% residential property developer tax (on relevant group profits over £25 million) that certain companies derive from UK residential property development, effective April 2022.

Note that the UK's spring budget earlier this year already introduced several significant tax measures including an increase in the corporate tax rate to 25% (from 19%) starting April 1, 2023, a temporary extension of the loss-carry back period, and a new temporary super-deduction for qualifying assets.

For more information, contact your KPMG adviser.

Information is current to November 1, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500