How New Investment Zones May Create Accountancy Opportunities
Posted on Saturday, October 29, 2022 by Lydia Sinclair — No comments
With so much economic doom and gloom around, many graduates may be concerned about the prospects for the coming months. However, there could be some good news on the way.
Although there has been much debate and no little critical comment about the government’s new approach to the economy, the decision to cut taxes both for individuals and firms will certainly give accountants much to do.
This will be particularly so in 38 local authority areas in England that have been selected as Investment Zones. In these areas, planning rules will be eased to encourage investment and construction, allied to a series of tax breaks. The government’s document compares the tax breaks proposed to those already in place in the new freeports around the country.
While the government has talked much about ‘levelling up’ in recent years and the Conservatives have been seeking to shore up support in ‘red wall’ areas that switched to them in the last general election, these zones are spread across the country.
Accounts jobs in Bedford may be among those affected by this development, as Bedford Borough Council is among those on the list, as is the neighbouring Central Bedfordshire Council.
The tax benefits will include 100 per cent business rates relief on new and expanded premises, while councils hosting investment zones will get 100 per cent of the extra business rates revenue raised above an agreed level on designated sites for 25 years.
Firms in the zones will also get full stamp duty land tax relief on land purchases, as well as a zero rate on Employer National Insurance contributions for the first year on new hires earning less than £50,270. There will also be reliefs for investments in plant and machinery as well as structures and buildings for the first year.
In his announcement, Chancellor Kwasi Kwarteng called the plan “an unprecedented set of tax incentives for businesses to invest, to build and to create jobs right across the country”.