The measure comes after the time limit for paying tax after disposing of residential land and property in the UK was reduced to just 30 days.

But following recommendations made by the Office for Tax Simplification (OTS) in May, the deadline has now been increased to 60 days with immediate effect for all completions made on or after 27 October 2021.

The Government said the move will give taxpayers more time to “produce and provide” accurate figures, as well as “sufficient time to engage with advisers”.

For non-UK residents disposing of any type of property in the UK, whether directly or indirectly owned, the deadline will also double from 30 days to 60 days.

In related news, the Government will also seek to publish new legislation relating to the disposal of “mixed-use” properties in Finance Bill 2021-22.

The proposed clauses will clarify that, where a gain arises in relation to a mixed-use property, only the portion of the gain that is the residential property gain is to be reported and paid.

The full breakdown of the changes can be found here.

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The UK economy grew by 4.8 per cent. However, this figure misses the Bank of England (BoE) forecast by 0.2 per cent, which expected a five per cent rise during the reopening of businesses.

Instead, the ONS discovered that Gross Domestic Product (GDP) was uneven during Q2.

Thanks to Euro 2020, however, accommodation, food and retail services rapidly increased – providing the UK with a better chance at economic recovery.

This proves that the growth in the economy is due to sectors opening up that offer social experiences that were prohibited or limited during social distancing.

Education-based manufacturing bounced back during Q2 as the schools reopened too.

One industry that did not share the same recovery success was vehicle production, which fell by 16.7 per cent. The ONS states this is due to “a global semiconductor shortage”.

In June, the ONS states that the growth expanded by one per cent and revised the figure from 0.8 to 0.6 per cent in May.

The monthly growth was forecast at one per cent at the end of the second quarter, which is more than most experts predicted.

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• A super-deduction providing allowances of 130 per cent on most new plant and machinery investments that ordinarily qualify for main rate writing down allowances
• A first-year allowance of 50 per cent on most new plant and machinery investments that ordinarily qualify for special rate writing down allowances

This super-deduction effectively allows companies to their tax obligations by nearly 25p for every £1 they invest.
Similarly, companies that are entitled to the first-year allowance for plant or machinery could access a reduction in tax of nearly 10p for every £1 spent.
Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowances and as such there is not an exhaustive list of plant and machinery assets.
However, the following may be able to benefit from these new capital allowances:

• Compressors
• Computer equipment and servers
• Electric vehicle charge points
• Foundry equipment
• Ladders, drills, cranes
• Office chairs and desks
• Refrigeration units
• Solar panels
• Tractors, lorries and vans.

To benefit from the relief the assets purchased must be new and not second hand or refurbished equipment.
The relief is only available to incorporated companies, but unincorporated businesses continue to benefit from the Annual Investment Allowance (AIA) which permits a deduction of 100 per cent for qualifying plant or machinery expenditure up to the threshold of £1 million.
If you are looking to invest in plant and machinery in the near future then it may be worth waiting until after 1 April. If you would like advice on these and other existing capital allowances, please contact us.

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• The power to order companies to pay their suppliers when a complaint against them for late payment has been investigated and upheld
• The power to fine companies who continue to breach the rules
• The power to “compel companies to share information during an investigation by the SBC”
• the power to launch investigations into suspected bad payment practice, without the need to have first received a complaint from a small business.

Commenting on the measures, Small Business Minister Paul Scully said the Government is “seeking to create a culture of prompt payment in UK business”.
“Late payments are a terrible burden for small businesses, not only disrupting their cash flow but posing a threat to their survival in many cases,” he said. “We are committed to tackling this problem, supporting small businesses at this critical time for the British economy by helping them to secure payment on time.”
Welcoming the plans, National Chairman of the Federation of Small Businesses (FSB) Mike Cherry added: “We know that paying small businesses late is debilitating, and the practice has increased during COVID-19. It deprives small firms of cashflow, holds back growth, undermines productivity and forces many to take out external finance.
“In thousands of cases a year this causes the closure of small businesses. It is therefore more important than ever to wipe out this poor payment scourge. The proposed new powers would give the Small Business Commissioner some teeth to investigate bad practice more easily and punish it more severely, and it is very welcome to see these plans being put forward for consultation.”
The proposals follow news that the Prompt Payment Code – the set of guidelines designed to stamp out late payments – would be reformed to better support small businesses.
Announcing the reforms, a Department for Business, Energy and Industrial Strategy spokesperson said: “Whilst we believe these remain important principles, we also believe that reform could improve the Code.”
For help and advice dealing with late payments, please get in touch with our expert team today.

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• 69 per cent have looked into ways to increase their business income.
• 67 per cent have proceeded to decrease costs to cover their losses (creating an average saving of 25 per cent of expenditure).
• 20 per cent have focused their time on enhanced communication with their customers or clients.
• 20 per cent have reduced discretionary spending and operational costs.
• 18 per cent have built a website promoting their services.
• 16 per cent used the furlough scheme to cut costs.
• 10 per cent have turned to a new market.
• Eight per cent applied for the Coronavirus Business Interruption Loan Scheme (CBILS). 
• Seven per cent applied for the Bounce Back Loan Scheme (BBLS).

For help or advice on planning for the future of your business, please contact us.

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