Chancellor Rachel Reeves presented her inaugural Labour Budget on 30 October 2024, outlining a comprehensive plan to tackle a £22 billion fiscal deficit while enhancing public services. Key measures include raising the National Living Wage to £12.21 per hour from April 2025 and increasing National Insurance contributions, which are expected to create financial pressure on businesses, especially small and medium-sized enterprises (SMEs). The Budget also introduces significant revisions to Capital Gains Tax rates and a new surcharge on Stamp Duty for second homes.Concerns have been raised among high-net-worth individuals regarding increased scrutiny and compliance requirements. Businesses face challenges due to rising employment costs stemming from these changes, which could hinder growth and investment. Overall, the Budget reflects a cautious approach to fiscal management amid rising living costs and stagnant public services. As stakeholders navigate these changes, Ward Williams is poised to provide expert guidance to help individuals and businesses adapt their financial strategies effectively in this evolving landscape.
Research and Development tax relief
Research and development (R&D) tax credits are a form of tax relief to incentivise UK companies to invest in innovation. They can reduce your tax bill or you can claim payable cash credits as a proportion of your R&D expenditure.
R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The activities which directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are R&D. Note that it is not just the traditional industries such as life sciences that undertake qualifying R&D. R&D can be undertaken in almost any industry and the definition of R&D is deliberately wide ranging to ensure industries are not discriminated against.
