Budget 2017: Hammond takes aim at tech giants with tax clamp down

Share

From April, rates will rise in line with the lower Consumer Prices Index (CPI) measure of inflation, not the Retail Prices Index (RPI).

Chief executive, Helen Dickinson, said: "From being caught in a web of competing pressures from all parts of the economy, limiting the scope for action, it's clear that the Chancellor has listened to the retail industry and the growing chorus from across business and commercial life who have spoken up in favour of action to mitigate rising rates bills".

"From April, I will increase the personal allowance to £11,850, and the higher rate threshold to £46,350 - making progress towards our manifesto commitments".

"Multinational digital businesses pay billions of pounds in royalties to jurisdictions where they are not taxed, and some of these royalties relate to United Kingdom sales", Mr Hammond said.

While the rise of digital businesses has encouraged innovation and growth, it had also posed significant challenges to the fairness of the UK's tax system, Chancellor Philip Hammond said during his Budget speech.

The amount of tax primarily American tech giants pay in the United Kingdom has been a source of contention for the government and HMRC for years.

'Justice League': Joss Whedon Wrote Opening Batman Scene
Joss Whedon is now writing the script for Batgirl and will also serve as both director and producer. My scene with Batman was originally conceived as a comedic scene.

The Budget statement showed while the increased income tax from multinationals is expected to bring in £200 million a year on average, it will rise to £285 million in 2019-20 before falling in each of the following years to £130 million in 2022-23.

In a move to support "thousands of small pubs", Mr Hammond said he would also extend a £1,000 discount on their business rates - for those with a rateable value of less than £100,000 - for another year until March 2019.

Business rates revaluations taking place every three years instead of five, in an attempt to avoid big hikes or falls.

But Mr Hammond revealed plans to reduce the period between revaluations in a move that is expected to further ease pressure on United Kingdom firms.

The Chancellor added: "This does not solve the problem, but it does send a signal of our determination and we will continue work in the global arena to find a sustainable and fair long-term solution that properly taxes the digital businesses that operate in our cyberspace".

Share