Tag: Treasury

The press release issued by HM Treasury on 18 April 2023.

All assets and economic resources belonging to Nazem Ahmad in the UK have been frozen.

• Suspected Hizballah financier Nazem Ahmad has been sanctioned using domestic counter-terrorism powers.
• Powers used for the first time in order to curtail a suspected international terrorism financing network.

The UK Government has announced a full asset freeze against an individual suspected of financing the terrorist group Hizballah.

Nazem Ahmad has been sanctioned as part of continued efforts to prevent terrorism in the interests of national security. The move will also protect the integrity of the UK economy from terrorist financing threats.

All assets and economic resources belonging to Ahmad in the UK have been frozen and no UK person may do business with him or any of the companies he owns or controls.

This is the first use of the Treasury-led domestic counter terrorism regime, which is used to target those who HM Treasury has reasonable grounds to suspect are involved in terrorist activity.

Treasury Lords Minister Baroness Penn said:

“We will always proactively defend our economy against those who seek to abuse it.

“The firm action we have taken today will clamp down on those who are funding international terrorism, strengthening the UK’s economic and national security.”

The action is part of a coordinated effort with partners to disrupt an international terrorist-financing operation.

Ahmad has an extensive art collection in the UK and he conducts business with multiple UK-based artists, art galleries and auction houses. Following his designation he will be prevented from trading in the UK art market, and other dealers in high-value items will no longer be able to conduct business with him and his associated companies including White Starr DMCC, Bexley Way General Trading LLC, Best Diamond House DMCC, Sierra Gem Diamonds Company NV, Park Ventures SAL and the Artual Gallery.

Further information

• This is first time use of powers to designate an individual under the Counter Terrorism (Sanctions) (EU Exit) Regulations 2019.
• An asset freeze means that it is generally prohibited to deal with the funds or economic resources which are owned, held or controlled by a designated person. The freeze prohibits the making available of further funds or economic resources directly or indirectly to a designated person, and engagement in actions that directly or indirectly circumvent the prohibitions.
• When an asset freeze is applied, the funds or economic resources are frozen immediately by the person in possession or control of them.
• Imposing an asset freeze does not change the ownership of the frozen funds or economic resource and nor are they transferred to the Office of Financial Sanctions Implementation or HM Treasury for safekeeping.

Sanctioned individual

Nazem Ahmad, suspected Hizballah financier who has control over White Starr DMCC, Bexley Way General Trading LLC, Best Diamond House DMCC, Sierra Gem Diamonds Company NV, Park Ventures SAL and the Artual Gallery.

The press release issued by HM Treasury on 13 April 2023.

The Economic Secretary to the Treasury, Andrew Griffith MP, has appointed Martin Egan as a Non-Executive Director of the Debt Management Office (DMO) Advisory Board.

Martin has extensive experience in financial markets, including as former Global Co-Head of Primary and Secondary Credit at BNP Paribas.

In this role Martin will support the DMO’s Chief Executive and senior team and bring considerable experience, skills and judgement to the full array of Advisory Board issues.

Martin will be appointed for a three-year term. He will replace Paul Richards whose term on the DMO Advisory Board has come to an end.

Economic Secretary to the Treasury, Andrew Griffith said:

“I am very pleased to announce the appointment of Martin Egan. He will bring a vast amount of knowledge, skill and experience to the Advisory Board, helping the DMO to continue delivering its critical role.

“I would also like to thank Paul Richards for his excellent contribution to the work of the DMO.”

Sir Robert Stheeman, Chief Executive of the DMO, said:

“I am delighted that Martin Egan has been appointed to join our Advisory Board as a Non-Executive Director.

“Martin’s extensive knowledge and experience of fixed income markets means that he will be well placed to support the DMO in continuing to deliver its critical objectives, including meeting the government’s financing requirements, to the highest standards.”

Martin Egan said:

“It is an immense privilege to act in an Advisory Role for the UK DMO in an incredibly exciting but also challenging environment. The UK DMO is recognised globally for its expertise and best in class standards and I hope my experience can assist the evolution of the DMO as we embrace the financial markets of the future.”

About Martin Egan

Martin Egan has 37 years of experience in financial markets. Most of his career was spent at BNP Paribas in various roles including Managing Director Global Co-Head Primary and Secondary Credit, Vice Chairman of the Global Markets Client Board, and Chair of BNPP UK Ltd. He was also Chair of the Diversity and Inclusion Network at BNPP UK. Earlier in his career he held roles at JP Morgan Ltd., UBS Investment Bank and Credit Suisse First Boston.

Martin was also the Chair of the Board of the International Capital Market Association from May 2017 to May 2018, and a member of the Board for another 5 years before that.

Martin confirmed he has not engaged in any political activity in the last five years.

About the appointment process

The DMO is an executive agency of HM Treasury which is responsible for debt and cash management for the UK Government, lending to local authorities and managing certain public sector funds.

Martin Egan has been appointed following an open recruitment process run by HM Treasury. A panel comprising of Dame Sue Owen (Non-Executive Chair, DMO Advisory Board), Ruth Curtice (Director of Fiscal, HM Treasury) and Kevin Parry OBE (independent panel member) interviewed a number of candidates and made recommendations to the Economic Secretary to the Treasury, which informed his decision.

The press release issued by HM Treasury on 13 April 2023.

Chancellor confirms UK stands ready to provide additional $500 million in UK guaranteed loans for Ukraine, plus $670 million in new loan funding for developing nations.

• New money brings total UK funding for IMF’s trusts to $5.3 billion to help reduce poverty and boost energy security, plus $1 billion for Ukraine this year
• Funding confirmed as Chancellor reaffirms his plan to get the U.K. economy growing to global finance ministers meeting in Washington D.C. this week

Today, Jeremy Hunt, Chancellor of the Exchequer, has confirmed the UK stands ready to provide an additional $500m in UK guaranteed loans for Ukraine, taking this year’s total to $1 billion and the total amount pledged by the UK in support of Ukraine to £6.5 billion. This comes as he attends the International Monetary Fund’s Spring Meetings in Washington D.C., alongside fellow supporters of Ukraine, and today took part in a roundtable on support for the country.

This new money will help to meet Ukraine’s economic needs including covering the costs of vital government services, such as running hospitals and schools as well as supporting the most vulnerable Ukrainians.

The Chancellor has also committed a further $670 million to reduce poverty and drive growth, going above and beyond previous commitments to boost financial support for developing nations through the International Monetary Fund’s (IMF) Poverty Reduction and Growth Trust. With this pledge the UK has fulfilled the commitment made during its G7 Presidency to deliver multi-billion-dollar funding to fight poverty and boost growth.

This funding brings the total given by the UK to the Trust to $2 billion and comes alongside the UK’s delivery of a $3.3 billion pledge to the IMF’s Resilience and Sustainability Trust, which provides affordable long-term financing to low-income countries and vulnerable middle-income countries to address challenges such as climate change, energy security and pandemic preparedness.

Chancellor of the Exchequer Jeremy Hunt said:

The $1 billion of budget support we have committed to Ukraine this year will ensure that the country has the financing to keep the lights on, hospitals running and schools open. This, alongside UK military support, will help defeat Putin.

But our efforts for a fairer world don’t end there. We are also making good on our G7 Presidency commitments and delivering a multi-billion-pound package of support to reduce poverty and bolster energy security across developing countries.

The UK’s financial commitment to Ukraine has helped unlock the IMF’s provision of a $15.6 billion 4-year programme for the country.

In total, the UK has pledged £6.5 billion in support of Ukraine, including $1 billion in loans guaranteed by the UK to support Ukraine’s economy in 2023 – meaning that it can continue to pay pensions and public sector pay – and £2.3 billion in military support for 2023. This June the UK will also host the Ukraine Recovery Conference, focussing on mobilising further private sector investment.

At the IMF Spring Meetings, the Chancellor will also highlight the impact of Russia’s illegal war in Ukraine on the global economy and push for action in addressing developing country needs on debt. The economic impacts from Putin’s illegal war in Ukraine are being felt across the globe, with developing nations particularly affected by increases in food prices. The latest $670 million commitment to the Poverty Reduction and Growth Trust adds to the UK’s previous agreement to the fund of $1.3 billion, with the total now standing at $2 billion.

The Chancellor signed this commitment on Wednesday alongside IMF Managing Director Kristalina Georgieva. In this meeting, he also finalised a $3.3 billion pledge on behalf of the UK to the IMF’s Resilience and Sustainability Trust. Funding for this Trust will play a vital role in providing financing to bolster energy and combat climate change, including for Ukraine and other countries worst affected by the war.

Foreign Secretary James Cleverly said:

Russia continues to bombard Ukraine’s people and destroy Ukrainian infrastructure. The UK is resolute in its commitment to support Ukraine until peace is agreed on Ukrainian terms.

This funding will boost Ukraine’s economic resilience and bolster its resistance against Russia. Working with the IMF and international partners, I am proud of the UK’s contribution to unlocking vital finance for Ukraine.

Ensuring Ukraine’s fiscal, humanitarian and recovery needs is a core part of our long-term commitment to Ukraine. That’s why the UK is proud to be co-hosting – jointly with Ukraine – the Ukraine Recovery Conference.

A challenging World Economic Outlook published by the IMF earlier this week predicted a ‘rocky road’ for global economies, including the U.K., however Britain is still forecast to see faster growth than Germany, France and Italy in each of years from 2025 to 2028. The UK avoided recession in 2022 and is now expected to avoid recession this year. According to the independent Office for Budget Responsibility, the UK is on track to more than halve inflation this year and reduce debt by the end of the forecast period.

The Chancellor is currently attending his first IMF meeting in Washington D.C., discussing how his Autumn Statement and Spring Budget have set the UK on a stable path to growth. He will attend IMF Committee meetings, G7 and G20 finance minister meetings and a series of bilateral engagements.

Chancellor of the Exchequer Jeremy Hunt said:

Our support for other countries comes at a time when I am deeply focussed on getting the UK’s economy growing, and our plan for that is working as we’re on track to halve inflation this year.

A strong UK economy, creating jobs and raising living standards for all will benefit citizens at home as well as having knock on positive impact around the world.

The press release issued by HM Treasury on 11 April 2023.

The Chancellor has today announced that he has appointed Megan Greene as an external member of the MPC of the Bank of England.

The press release issued by HM Treasury on 6 April 2023.

Lighthouse International Group Holdings Trading LLP has been wound-up in the public interest by the High Court following an Insolvency Service investigation.

Lighthouse was incorporated in 2012, and purported to offer life coaching services as well as mentoring, career and business development services. It promised on its website that customers subscribing to its products and services would be able to “optimise results in your life, in direct proportion to your investment of time, money and effort”.

Customers who subscribed to the service paid substantial sums as identified from analysis of Lighthouse’s bank accounts. Between August 2014 and July 2022 Lighthouse received over £2.4m in income from customers. From this income at least half was paid over to Paul Waugh, a Lighthouse member over a four-year period, and smaller amounts were paid to other members.

The court found that Lighthouse failed to deliver up its trading and financial records, as required by law, during the Insolvency Service investigation. Therefore, the investigators were unable to fully determine the exact nature of its business activities or verify Lighthouse’s account provided in proceedings that it had operated as a “research community” that had never launched its work as a viable business. Lighthouse was also found to have filed misleading or false accounts. The accounts filed recorded that over a 9 year period it had nil assets or liabilities suggestive that it had not traded.

Lighthouse, and its members failed to fully co-operate with the Insolvency Service’s investigation.

Edna Okhiria, Chief Investigator at the Insolvency Service said:

Lighthouse and its members refused to co-operate with our investigation and the court rightly agreed to wind up the partnership.

Paul Waugh’s efforts to obstruct our work were deemed ‘unacceptable’ and ‘deliberate’ by the judge, who also commended the investigation team for its professionalism. Where we find evidence that directors or partners are failing to adhere to their statutory obligations, for example failing to maintain adequate records, we will seek to have them wound-up in the public interest.

As a result, Lighthouse International Group Holdings Trading LLP was wound-up in the public interest in the High Court of Justice Business and Property Courts by Deputy Judge Jones on 28 March 2023. The Official Receiver has been appointed as Liquidator of the LLP and has a statutory duty to investigate the conduct of all current and former partners as part of the Liquidation proceedings.

The press release issued by HM Treasury on 4 April 2023.

HMRC announces date for the first Cost of Living payment during the 2023 to 2024 tax year, for tax-credits only customers.

One million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first Cost of Living Payment for the 2023 to 2024 tax year from Tuesday 2 May 2023, HM Revenue and Customs (HMRC) has confirmed.

The £301 government payment will be paid automatically into most customers’ bank accounts between Tuesday 2 and Tuesday 9 May 2023 across the United Kingdom. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.

This is the first of three payments totalling up to £900 for those eligible in the 2023 to 2024 tax year.

Chief Secretary to the Treasury, John Glen, said:

Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.

But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:

The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.

HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.

The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.

For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.

Eligible customers do not need to apply or contact HMRC to receive the payment.

The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first payment for the 2023 to 2024 tax year between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.

The payments are part of a package of wider government support announced to tackle the cost of living in the 2023 to 2024 tax year, including:

• a further £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in spring 2024
• a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
• a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.

This means that the most vulnerable can receive up to £1,350 in direct payments over the coming financial year if eligible.

Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.

The government is offering help for households. Customers should check GOV.UK to find out what support they could be eligible for.

Additional information

To receive the £301 payment someone must (subject to a very limited exception) have been entitled to a payment of a qualifying benefit as follows:

• eligible tax credit-only customers, who will receive the £301 payment between 2 and 9 May 2023, must have received a payment of tax credits in respect of any day in the period 26 January 2023 to 25 February 2023, or later be found to have been entitled to a payment for this period.
• for joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
• to be eligible for the DWP payment, families must have been entitled to a payment (or later found to be entitled to a payment) of either:

Universal Credit – payment for an assessment period ending between 26 January 2023 and 25 February 2023.

For all other DWP means-tested benefits, payment in respect of any day between 26 January and 25 February 2023.

• receiving a previous Cost of Living Payment does not mean you will be entitled to a future one. Customers will need to meet the separate eligibility criteria for each payment.

Customers do not need to apply for this payment. If customers are eligible through receiving tax credits only, HMRC will make the Cost of Living Payment automatically into the bank account where claimants already receive their tax credits. Customers might find that their payment is delayed if they have recently closed the bank account their tax credits are usually paid into.

If customers have not let HMRC know that their bank account has changed, HMRC will pay the money into their old bank account, meaning the payment will be rejected. If this happens, HMRC will follow this up by letter to the customer, letting them know that we need updated bank details.

If tax credit customers believe they are eligible but have not received a payment between the published payment dates, they should wait until 16 May 2023 at the earliest to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment. We will not be able to provide customers with any further information before this date.

More than 8 million families on means-tested benefits will receive up to £900 during the 2023 to 2024 tax year, in up to 3 payments. This includes all eligible families entitled to a payment of the following benefits: Universal Credit; Income-based Jobseekers Allowance; Income-related Employment and Support Allowance; Income Support; Working Tax Credit; Child Tax Credit; and Pension Credit.

This payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

The 3 means-tested cost of living payments are being delivered in 3 slightly different amounts of £301, £300, and £299. The distinct value relates to a specific qualifying period before the payment is made. This allows HMRC and DWP to ensure support is targeted at those who need it and are eligible; to determine if a payee received the correct payment and identify the payment value; and to reduce the risk of fraud as HMRC and DWP will be able to clearly track those who have received payment.

Beware of scams targeting cost of living payments. If someone contacts you about this payment saying they are from HMRC, it might be a scam.

You do not need to apply for this payment. HMRC will never ask for your bank details by SMS or email. Do not let yourself be rushed. Check advice on spotting scams by visiting GOV.UK and searching ‘phishing and scams’. You can also find ways to contact us on GOV.UK – search ‘Contact HMRC’ and choose ‘tax credits’.

The press release issued by HM Treasury on 3 April 2023.

Government extends successful NatWest Group trading plan for a further two years to support the intention to exit its shareholding by 2025-26.

• This represents continued progress in meeting the government’s aim to return its shareholding in NatWest Group to private ownership
• Since the trading plan was established in August 2021, over £3.7 billion in proceeds have been raised

NatWest is on track to return to private ownership as the government announces a two-year extension to its trading plan for NatWest Group (formerly the Royal Bank of Scotland Group plc) today (03 April 2023).

A trading plan involves selling shares in the market through an appointed broker over the duration of the plan. Today’s extension, ensuring the plan will be in place until August 2025, indicates the government’s commitment to returning NatWest Group to full private ownership.

Economic Secretary to the Treasury, Andrew Griffith, said:

We are determined to return NatWest to full private ownership.

Today’s extension marks another significant milestone in delivering this – ensuring we achieve best value for the taxpayer as we sell down the shareholding.

The government’s NatWest Group shareholding currently stands at around 42%, down from around 84% at its peak. The government will only dispose of its NatWest Group shareholding when it represents value for money to do so and market conditions allow.

HMT and UK Government Investments continue to keep other disposal options under active consideration for future sales. Extending the trading plan does not preclude government from using other options to execute future transactions that achieve value for money for taxpayers, including directed buybacks and/or accelerated bookbuilds.

The press release issued by HM Treasury on 1 April 2023.

New rules on lettings for self-catering properties you will need to meet to continue to be eligible for business rates.

From April 2023, new eligibility rules for business rates will apply to self-catering properties in England and Wales.

If you don’t meet these rules your property will become eligible for paying Council Tax.

The rules will be used in assessments from 1 April 2023. The information about lettings during the 2022/23 operating year will be used to determine whether a property is eligible.

The changes

The new eligibility rules are different depending on whether your property is in England or Wales.

If your property is in England:

To continue to be eligible for business rates, from 1 April 2023 your property must be:

• available for letting commercially for short periods that total 140 nights or more in the previous and current year.
• actually let commercially for 70 night or more in the previous 12 months.

If your property is in Wales:

To continue to be eligible for business rates, from 1 April 2023 your property must be:

• available to let commercially for short periods that total 252 nights or more in the previous and current year.
• actually let commercially for 182 nights or more in the previous 12 months.

The VOA looks at whether the property was occupied immediately before midnight to establish whether a property was let on a certain night.

For example, this means that a property let out from Friday evening to Sunday morning would have been let for two nights for the purposes of meeting the self-catering criteria.

What being let commercially means

When we talk about commercially let properties, we mean properties that are let with the intention of making a profit. This usually means the property is let at market rates and actively advertised. For example, using holiday cottage websites, estate agents, and tourist web pages to advertise the property.

Any non-commercial lettings, for example lettings to family and friends for amounts below the market rates, would not count towards commercial lettings.

Who is affected

The new rules apply only to properties classified as self-catering holiday lets by the VOA within the broad use category of short stay accommodation . They don’t apply to other types of accommodation in this category, such as hotels, hostels and guest houses.

There won’t be any exceptions in the application of the new eligibility rules. They will apply equally to all self-catering properties across England and Wales.

New self-catering properties will be liable for Council Tax until the property meets the eligibility rules.

When properties will be assessed using the new rules

Valuation officers conduct a rolling programme to check that properties listed as self-catering properties in the non-domestic rating list meet the eligibility rules. A valuation officer will ask for this information in the ‘Request for Information’ form, which will be sent to you at a later date. It will consider whether you meet the new rules on your actual lettings for your property in 2022/23.

The rolling programme means we will ask customers to give us information at different times during the 2023/24 operating year. But we will be using a universal date, from which we will assess whether the new eligibility rules have been met, of 01 April 2023.

The new eligibility rules will be used in assessments made from 1 April 2023.

Properties may also be reassessed for other reasons. For example, if there has been a change of circumstances or a change of use.

We usually tell customers to tell us as soon as they know about a change in circumstances, such as a self-catering property no longer being used this way. This is so we can add it to the Council Tax Valuation List, and your local council can contact you about your Council Tax bill.

But you don’t need to tell the VOA if you know you won’t meet the new eligibility roles on lettings until after 01 April 2023. This is because we can’t make changes to the Rating List on the new eligibility criteria until it comes into force.

The information used in assessments

The VOA issues forms called ‘Requests for Information’. One of them has been designed specifically for self-catering units and holiday cottages. The information provided on this form is used to check that the eligibility rules for self-catering properties are met.

It’s important that you return this form in time – you will be liable to a financial penalty otherwise. It’s also important to complete it accurately, as it’s a legal document and there can be serious consequences for including false information, including prosecution.

Support available

There are a number of reliefs available to assist businesses, including the Small Business Rates Relief scheme (SBRR). You can find out more about reliefs by contacting your local council.

Any questions about business rates or Council Tax payments should be made to your local council.

The press release issued by HM Treasury on 31 March 2023.

Businesses across the UK can take advantage of the Chancellor’s capital allowances package from today as the new business tax year begins.

• the new business tax year comes in today 1 April 2023, with a new regime to boost investment and spur UK growth
• £27 billion cut to corporation tax, via Chancellor’s new full expensing policy, expected to boost investment by 3% in each of the next three years
• other tax changes coming into force include more business rates relief, extension to the fuel duty cut and a £450 income tax cut for carers

The package, announced at Spring Budget, comprises 100% full expensing and a 50% first-year allowance. It will mean the UK has the most generous capital allowance regime in the OECD worth £27 billion over the next three years, amounting to an effective £9 billion a year tax cut for companies.

The OBR expects this regime to boost investment by 3% over three years.

To mark the milestone, Financial Secretary to the Treasury visited Brompton Bikes in Greenford, London, who’ll be using full expensing to stimulate their growth.

Victoria Atkins, Financial Secretary to the Treasury, said:

“We are determined to make the UK the best place in the world to do business, which is why from today businesses can start to benefit from the raft of tax cuts on offer to boost their growth.

“With full expensing, the more a company invests the less tax they’ll pay, and I encourage companies of any size to take full advantage of this world-leading reform.”

With the new 25% corporation tax rate coming in for the top 10% most profitable companies from today, and the super-deduction ending yesterday, the Chancellor used his Spring Budget to ensure that the UK’s tax system fosters the right conditions for enterprise, investment and growth.

Full expensing lets companies deduct 100% of the cost of certain plant and machinery investments from their profits before tax. It is available from 1 April 2023 to 31 March 2026. It provides the same generosity as the super-deduction, saving firms up to 25p in every £1 of qualifying investment and is for main rate assets – such as construction, warehousing and office equipment.

The 50% First-Year Allowance lets companies deduct 50% of the cost of other plant and machinery, known as special rate assets, from their profits during the year of purchase. This includes long life assets such as solar panels and lighting systems.

Minister Victoria Atkins visited Brompton Bikes in Greenford this week to see how these capital allowances will be used to help the firm invest and grow. The minister toured their factory, viewing a brand new state-of-the-art Autobraze machine and the production line. She also met a selection of 15 trainees currently on Brompton’s training programme.

Phill Elston, Operations Director at Brompton Bicycle, said:

“The announcement of a super deduction replacement is great news for us. In previous years it has meant we could invest significantly in our production capabilities, upgrading equipment and building a more progressive factory; which has seen us move from making circa. 45,000 bikes per year in 2019, to around 100,000 bikes per year in 2022.

“Our mission is to improve how people travel around cities, which in turn creates happier communities, and the new expensing scheme helps to accelerate that goal.”

Other tax measures taking effect today include new domestic and ultra-long Air Passenger Duty bands.

For passengers flying in economy class, the new domestic band will be set at £6.50, a 50% cut to bolster UK-wide connectivity, while the new ultra long-haul band will be set at £91, meaning those who fly the furthest will pay the greatest level of duty.

Transport Secretary Mark Harper said:

“Transport binds the United Kingdom together, and this cut to Air Passenger Duty will make travelling between our family of nations easier than ever.

“Boosting transport links between our four nations sustains jobs, creates opportunities and is an essential part of this Government’s plan to grow the economy.”

Further tax measures include:

• To help household budgets further, the planned 11 pence rise in fuel duty has been cancelled, maintaining last year’s 5p cut for another twelve months, saving a typical driver another £100 on top of the £100 saved so far since last year’s cut.
• More business rates relief, as part of the Chancellor’s £13.6 billion package from 2022’s Autumn Statement. This includes the freezing of the multiplier and the introduction of 75% relief for retail, hospitality and leisure businesses, helping the high street to thrive and compete with online firms.
• Extending creative sector reliefs: theatres, orchestra and museums and galleries will benefit from a further 2 years of tax relief rates of 45%/50%. The museums and galleries exhibitions tax relief sunset clause will be extended for a further 2 years to allow these organisations to fully benefit from the extension of the highest rates.
• The Annual Investment Allowance (AIA), an existing measure which also supports business investment, has been increased permanently to £1 million today. This covers the investment needs of 99% of UK businesses.
• Rebalancing the rates of Research and Development Expenditure Credit and the R&D SME scheme to ensure taxpayers’ money is spent as effectively as possible. As a result, today the UK now offers the joint-highest uncapped headline rate of R&D tax relief support in the G7 for large companies.
• The government also committed to considering the case for further support for R&D intensive SMEs, and at Spring Budget announced that from today there will be an increased permanent rate of relief for the most R&D intensive loss-making SMEs. To support modern methods of innovation, for accounting periods beginning on or after today, businesses will also be able to claim for the costs of datasets and cloud computing under the R&D tax reliefs.
• Expanding the Seed Enterprise Investment Scheme (SEIS) to help more UK start-ups raise higher levels of finance. This package will help over 2,000 start-up companies access finance.
• Expanding the availability and generosity of the Company Share Option Plan (CSOP) scheme which will widen access to CSOP for growth companies and simplifying the process to grant options under the Enterprise Management Incentives (EMI) scheme.

On 6 April 2023 personal tax changes taking effect include removing tax-barriers that the medical community have made clear stop doctors working, delivering on the Prime Minister’s priority to cut NHS waiting lists so people can get the care they need more quickly. The pensions annual tax-free allowance will increase by 50% from £40,000 to £60,000, the Money Purchase Annual Allowance will rise from £4,000 to £10,000, and the Lifetime Allowance charge will be removed. The Office for Budget Responsibility estimate around 15,000 individuals will remain in the labour market because of the changes to the annual and lifetime allowances, many of whom will be highly skilled individuals, including senior doctors in the NHS.

Qualifying Carers Relief will be uprated with inflation from 6 April 2023 to representing a £450 per year income tax cut for carers. The uprating increases the amount of income tax relief from £10,000 to £18,140 plus £375-450 per week for each person cared for.

The press release issued by HM Treasury on 24 March 2023.

• The UK Infrastructure Bank bill has received Royal Assent, confirming the UK Infrastructure Bank’s independence
• A vital part of the Government’s plan to invest in infrastructure, the Bank has already announced £1.2 billion of deals that unlock over £5 billion of private and public investment, driving growth in every region of the UK
• Headquartered in Leeds, the Bank is bringing hundreds of jobs to the city and has already created and supported 4,500 jobs across the country

The Bank provides funding to private companies and local authorities for projects to boost clean energy, improve transport links, expand digital infrastructure, and improve water and waste processing.

The bill will enshrine the Bank’s operational independence, put its objectives to level up the UK and help tackle climate change in statute and set out clear accountability structures.

Having already announced £1.2 billion of deals that unlock over £5 billion of private and public investment, the Bank is tasked with unlocking £40 billion of infrastructure investment by working closely with the private sector and local Government to drive growth and our green industrial revolution.

Andrew Griffith MP, Economic Secretary to the Treasury said:

“The UK Infrastructure Bank has already announced billions of pounds of vital investment as well as creating and supporting over 4,500 jobs UK wide.

“We have a laser focus on growing the economy and delivering high skilled, well paid jobs, as we drive forward this country’s clean energy revolution, creating opportunity in every region of the UK.”

Formally launched in June 2021 the UK Infrastructure Bank has been provided with £12 billion of capital to deploy, with the capacity to issue £10 billion of government guarantees, recently using these powers to unlock £75 million to accelerate full-fibre rollout to 1.5 million homes in the UK.

The Bank will continue its mission to harness investment tailored to the needs of specific local areas, offering a range of financing tools including debt, equity, and guarantees. Further information:

• Confirmation of Royal Assent is available in the Commons business papers and the House of Lords business page
• Full details on the investment deals unlocked by the UK Infrastructure Bank is available on the UKIB website