{"id":1875,"date":"2024-11-08T13:59:21","date_gmt":"2024-11-08T13:59:21","guid":{"rendered":"https:\/\/leyton.majjane.agency\/uk\/insights\/articles\/will-the-governments-corporate-tax-roadmap-drive-business-investment-in-the-uk\/"},"modified":"2026-07-26T16:41:13","modified_gmt":"2026-07-26T14:41:13","slug":"will-the-governments-corporate-tax-roadmap-drive-business-investment-in-the-uk","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/will-the-governments-corporate-tax-roadmap-drive-business-investment-in-the-uk\/","title":{"rendered":"Will the government\u2019s Corporate Tax Roadmap drive business investment in the UK?"},"content":{"rendered":"\t\t
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Following the Autumn Budget 2024, the government released their Corporate Tax Roadmap<\/a> to outline plans for Corporation Tax (CT) over the next five years.<\/p>\n\n\n\n

While the plans detail some commitments, they also outline a framework for where the government is looking to explore making changes in the future. The aim is to provide a \u2018stable and predictable tax environment for businesses\u2019, many of whom are still reeling from raises in employer contributions to National Insurance. <\/p>\n\n\n\n

The publication is a first step, which is to be followed by the release of an Industrial Strategy, the conclusion of the Spending Review, and plans for meeting our net-zero targets.

In this article, we explore the Corporate Tax Roadmap to highlight where the government has made firm commitments and where they have suggested potential changes that may affect innovative businesses, including to R&D Tax Credits<\/a>,Patent Box<\/a> (and other intangible assets), Capital Allowances<\/a> and Land Remediation Relief<\/a>.<\/p>\n\n\n\n

What is the purpose of the Corporate Tax Roadmap?<\/h2>\n\n\n\n

The Corporate Tax Roadmap is the government\u2019s way of giving UK businesses confidence, providing them with as much advance notice as possible to encourage \u2018investment, innovation, and growth over the long-term\u2019. More importantly, it contains promises on what won\u2019t be changing, which is why the headline announcement is the capping of CT at 25% for the whole of this Parliament.<\/p>\n\n\n\n

There are a few reasons why the government is trying to tread carefully here. The last time Labour delivered a budget was in 2010 and, like any new party in office, they are keen to win the trust of the business community. <\/p>\n\n\n\n

Raising private investment and boosting economic growth are seen as vital measures of success, but low growth and falling global economic competitiveness <\/strong>have been problems for the UK since the financial crisis of 2007-09. <\/p>\n\n\n\n

Just recently, both \u2018low investment\u2019 and \u2018policy uncertainty\u2019 were identified as primary causes for low growth in a research paper<\/a> written for Members of Parliament after the 2024 general election. By providing certainty, the government is hoping to finally unlock investment to get the economy growing again.

Of course, that doesn\u2019t mean that nothing is set to change. As part of driving growth, the government wants to improve the efficiency of the tax system, making it more customer-friendly while improving the accessibility and targeting of key relief schemes. Another goal is to reduce fraud and error. As such, these are the areas that the Corporate Tax Roadmap focuses on when proposing potential changes.<\/p>\n\n\n\n

What does the Corporate Tax Roadmap say about R&D Tax Credits?<\/h2>\n\n\n\n

R&D Tax Credits<\/a> are key to driving innovation as they incentivise private investment for developing new and improved products and services. The Corporate Tax Roadmap makes a series of clear commitments on R&D reliefs, including:<\/p>\n\n\n

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