It looks as though some tax cuts are on the agenda tomorrow as Jeremy Hunt delivers the Autumn Statement. However, with inflation still well above the Bank of England’s target and the parlous state of the public finances, any cuts will likely be modest. Here are five tax measures which the Chancellor should prioritise.
In his Spring Budget, Jeremy Hunt introduced a measure known as full expensing. This allows firms to write off capital investment costs against corporation tax immediately and in full, rather than having to spread the tax deduction over time. This is a good thing as it acts as an incentive for firms to invest in their businesses. So far the policy has been relatively successful but we are yet to see the full benefits of the policy. This is because the Treasury decided to make it temporary, with the measure due to end in 2026. This was a mistake.
