In line with government thinking, ICAEW’s representations focus on corporation tax measures that give businesses certainty and confidence to invest.  

ICAEW recommends that the government: 

• ensures that the research and development tax relief regime is fit for purpose by reviewing HMRC’s compliance approach and overhauling the government’s guidance;
• uses capital allowances to support capital investment. This includes taking forward the previous government’s work on leased assets, and reviewing those types of expenditure that attract neither a revenue deduction nor capital allowances;
• considers whether all the motive defences and purpose tests written into legislation are still required and are effective;
• sets out how the tax system can be used to support the UK’s transition to net zero;
• works with ICAEW and other stakeholders to understand why the small business tax gap appears to be widening, and what action could be taken to address the issue; and
• reforms and simplifies the UK’s rules relating to international tax matters. This may include identifying and removing anti-avoidance measures that tackle the potential avoidance that pillars one and two are designed to combat and taking steps to improve the operation of the corporate interest restriction.  

Although ICAEW understands that the roadmap will focus on corporation tax, the government should not lose sight of the wider tax landscape that impacts on businesses. ICAEW recommends that the government: 

• simplifies and expands the enterprise investment scheme;
• takes forward those measures from the 2023 consultation on employee ownership trusts and employee benefit trusts that received broad support;
• simplifies the VAT regime;
• modernises the business rates regime; and
• works with stakeholders to address issues in determining employment status. 

Further reading 

• ICAEW Representation 70/24: Business tax roadmap
• ICAEW makes business tax case at Labour Conference | ICAEW
• ICAEW makes its case for Budget tax measures