Corporation tax rate to remain at 19% . This is a reversal of the increase to 25% from 6th April 2023. A reward to businesses which create jobs and goods and services. This is now reversed by the new Chancellor. We weep corporation tax to remain 25%

Shareholders who get paid dividend have the rate at basic band reduced from 8.75% back to 7.5%. A great incentive to entrepreneurs who own and manage their own business using Limited company structure.This is reversed. We cry 8.75% Dividend tax.

Infrastructuredevelopments of Freetrade zone and Investment zones, with various time limited tax incentives.

#unitedkingdom #birmingham #growthplan2022 #sme #business #commercialfinance

Limits increased for employee Company share ownership schemes and Seed Enterprise investment scheme.

Annual Investment Allowance in plant and machinery between £200,000 to £ 1,000,000 made permanent. 100% tax Allowance

Migration rules changes to attract skilled staff to fill shortage in certain roles.

100 new Oil and gas licenses to be issued to ensure supply of oil and gas in the UK 🇬🇧. Oil and gas franking might be controversial environmentallly, however if UK Oil and Gas supplies can be secured, even if these will be sold at global market prices in the UK 🇬🇧, these profits will be retained in the UK 🇬🇧, the balance of payments strain to pay foreign countries for oil and gas will be eliminated or reduced, strengthing the GBP and the dependence on foreign countries for our supply of Oil and gas will be eliminated.

Learn more about Investment Zones and Freeports in the UK. Click the link https://www.gov.uk/government/publications/investment-zones-in-england/investment-zones-in-england#time-limited-tax-incentives

What are Freeports?

Freeports operate as secure customs zones, usually located at ports or airports, where business can be carried out inside a country’s land border, but where different customs rules apply. 

Countries around the world had adapted this basic model by adding different elements to create their own bespoke Freeports based on the Special Economic Zone (SEZ) concept. Each combines a mixture of customs flexibilities, to provide relief from duties, import taxes and administrative burdens; tax measures to incentivise private investment; regulatory flexibilities; and investment in infrastructure, all concentrated in the geographical area around the Freeport.

The UK Government has opted for a bespoke Freeport model which aims to achieve three objectives:

• To establish Freeports as national hubs for global trade and investment across the UK
• To promote regeneration and job creation
• To create hotbeds for innovation
• The successful Freeport bids in England are East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth & South Devon, Solent, Thames and Teesside.

Conclusion:

The free ports and investment Zones, regulations and tax incentives which will come with them. We look forward to the tax measures (time limited) for companies . It has been prefential free trade areas or zones which have made cities/states like Dubai (UAE), Singapore 🇸🇬 and Mauritius 🇲🇺 trading giants. The United Kingdom has historically grown to be a global power due to trade, which it needed to protect using its Navy, which enabled it to become a great Global power.

The UK under the leadership of His Majesty King Charles III is likely to develop and strengthen relationships of trade and finance amoung Commonwealth countries. The ties of the British Crown with the Commonwealth was emphasised during the the Funeral of her Majesty Queen Elizabeth II. The free trade agreements with Commonwealth countries should be aggregated into a Commonwealth wide Free Trade Common market.

Why the UK is a great Investment destination

The Sterling pound is currently weak against the US Dollar and other global currencies. So invest in the UK now.

● Once the francked oil and gas sites are operational once again (previously banned) and the 100 new Oil and gas licensees start producing, the balance of payments dynamics will change and the profits of the Oil and gas companies will remain in the UK. This will significantly strengthen the Sterling Pound. ● The UK financial services sector will be deregulated from EU financial services constraints, making London once again the most competitive Global financial centre. ● The UK has one of the most favorable tax rates of the developed world 19% . And Dividend to foreign resident individuals and companies are tax free. ●The Freeports and Investment zones are going to increase the value of goods and services produced or traded in the UK. Hence, the GDP will increase significantly. ● The post brexit freetrade agreements signed with Commonwealth countries like 🇰🇪 Kenya and other East African community countries, will increase intra-commonwealth trade.

https://www.gov.uk/government/news/uk-kenya-economic-partnership-agreement-enters-into-force

My sincere hope would be that the entire Commonwealth becomes a free trade area or common market.

These are great opposrtunities for the business community in the UK. I believe we as humans need positive reinforcement to change behaviour. We need more businesses to enable more of our people have jobs. These measures will create a positive virtuous circle 🔵 leading to Growth of the UK economy. The GBP will become more competitive as our balance of payments position will improve. I have a feeling 😕 we will have a more productive and prosperous United Kingdom. I pray for a golden era under the Golden Lady Liz Truss.

https://www.everestfinancial.co.uk/

Individuals

Stamp duty land tax (SDLT) nil rate band expanded to GBP 250,000 from GBP 125,000. So no stamp duty land tax is payable if the property you buy costs less than GBP 250,000.

If you are a first time buyer, then the Stamp duty land tax (SDLT) threshold increased from GBP 300,000 to GBP 450,000.

These are positives to make the initial purchase of a house 🏠 cheaper. However, the interest rates are going up not only in the UK but globally, would make house purchase cost more expensive.  Furthermore, rising borrowing costs, all things being equal would lead to a drop in property prices. Hence, house buyers who take advantage of the reduction in cost of purchasing a house, may have an unintended consequence of the drop in price of the house. Hence, lender’s would be requiring higher deposits.  This might not happen as the Financial market have given the GBP a beating against the US Dollar, which would lure foreign investors to invest in UK Real Estate 🤔.

I would have expected that full borrowing costs would be made available against individual (buy to let)  rental income, as before. Currently, individual rental property owners can only claim 20% of interest cost, as credit against tax payable. This could be considered discrimination against individual ownership of rental property by individuals as opposed to  rental property owned by companies, which have full borrowing cost allowable for tax purposes.

Companies

The additional 3% stamp duty land tax remains payable.

However, the announced increase of the corporation tax rate from 19% to 25% from 6th April 2023 was reversed.

The dividend tax rate on basic band was reduced from 8.75% to 7.5%. This gives shareholders more cash in hand.

There are investment zones with significant tax incentives. Investment Zones will comprise both Commercial , industrial and residential development in the designated area. This will lead to a more buoyant real estate sector.

Things to look forward

The free ports and investment Zones, regulations and tax incentives which will come with them. We look forward to the tax measures (time limited) for companies . It has been prefential free trade areas or zones which have made cities/states like Dubai (UAE), Singapore 🇸🇬 and Mauritius 🇲🇺 trading giants. The United Kingdom has historically grown to be a global power due to trade, which it needed to protect using its Navy, which enabled it to become a great Global power.

The eight English Freeport locations announced are:

• East Midlands Airport 
• Felixstowe & Harwich
• Humber Region
• Liverpool City Region
• Plymouth & South Devon
• Solent
• Teesside
• Thames

Another thing to develop and strengthen is greater trade and finance between Commonwealth countries. The ties of the British Crown with the Commonwealth was emphasised during the the Funeral of her Majesty Queen Elizabeth II. The free trade agreements with Commonwealth countries should be aggregated into a Commonwealth wide Free Trade Common market.

https://www.gov.uk/government/news/uk-kenya-economic-partnership-agreement-enters-into-force

These Freeports and Investment zones will spur real estate investment and create opportunities for commercial, retail, industrial, residential development. In Birmingham the investment zone is going to be in the Solihull area.

We remain positive and optimistic about growth and opportunity for trade, investment and finance in the UK. Foreign investors should take advantage of the weak Sterling Pound – GBP against the US Dollar and invest in the UK. As growth will be realised in the mid-term, and the GBP will strengthen significantly against the US Dollar and other major currency in 2-3 years.

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