As expected, the Spring Statement announced on Wednesday 23rd March, concentrated on measures which have the stated goal of alleviating the much talked about cost of living crisis.
Although businesses will benefit from the reductions in National Insurance and other exemptions on business rates for green technology and capital allowances, there were no direct changes to the employee incentives or capital gains tax, that would impact employee ownership and/or share schemes.
The main measures relevant to businesses are:
Employment Allowance increases
- The Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance Contributions (NICs) bills each year
- This has been increased from £4,000 to £5,000 from April 2022
Exemption on business rates for green technology
- A business rates exemption for green technology has been brought forward to April 2022.
- This will include solar panels and heat pumps and government states that it will save businesses an extra £35 million in 2022-23.
- In addition, there will be a 100% relief for eligible low-carbon heat networks which have their own rates bill.
- Reducing the VAT on energy savings materials (ESM) from 5% to 0%, further incentivising (says the Chancellor) homeowners to buy ESMs from businesses.
To read the Spring Statement in full visit: gov.uk
For any questions or queries on employee share schemes or employee ownership please contact Robert Postlethwaite or someone on the team on +44 (0)20 3818 9420 or email firstname.lastname@example.org