Other news in brief

On 23 March 2023, the Bank of England Monetary Policy Committee voted to increase the Bank of England base rate to 4.25 percent from 4 percent. As a result, HMRC interest rates for late and early payments will increase. HMRC’s late payment interest rate for most taxes is set at the Bank of England base rate plus 2.5 percent, so their late payment interest rate will increase from 6.5 percent to 6.75 percent. Interest charged on underpaid quarterly corporation tax instalment payments is calculated as base rate plus 1 percent so this will increase to 5.25 percent. These changes will come into effect on 3 April 2023 for quarterly instalment payments and 13 April 2023 for non-quarterly instalment payments. HMRC will also increase their repayment interest rate for most taxes to 3.25 percent, as it is set at Bank Rate minus 1 percent, with a 0.5 percent lower limit. For interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments the rate will be 4 percent.

On 29 March 2023, the Non-Domestic Rating Bill was introduced in Parliament. The Bill includes measures to increase the frequency of valuations to every three years instead of the current five, and introduce business rates improvement relief for qualifying building improvement works. These reforms follow the Government’s Business Rates Review, which ran from July 2020 to October 2021.

On 30 March 2023, the East Midlands Freeport site received government approval, meaning that it is now fully operational. Businesses in Freeports are able to benefit from certain tax incentives within Freeport tax sites, including enhanced capital allowances, relief from stamp duty and employer national insurance contributions for additional employees. A number of tax sites within East Midlands Freeport were designated last year. A new Freeport customs site within the East Midlands Freeport has also just been designated, providing beneficial customs arrangements.

The latest KPMG Global Economic Outlook looks at the prospects for the world economy in 2023 and 2024 and provides forecasts for growth, inflation and unemployment for 34 countries and economic areas.