Jeremy Hunt’s budget on Wednesday 6th March contained announcements that may directly affect transactions in the project finance sector, primarily legislating to extend the full expensing of qualifying capital expenditure to leased assets and the extension of the Energy Profits Levy (EPL).

 

Capital Allowances

It was announced in the Autumn Statement 2023 that businesses subject to corporation tax would be able to claim 100% first year relief (“full expensing”) on new main rate plant and machinery expenditure or a 50% first year allowance on new special rate (including long life) expenditure indefinitely.

At Budget 2024 it was announced that the Government would seek to extend full expensing to assets that are leased when fiscal conditions allow and will publish draft legislation shortly.

 

Energy Profits Levy (EPL)

The EPL is a temporary levy set at 35% that was introduced on companies producing oil and gas in the UK or on the UK Continental Shelf (UKCS) for profits arising from 1 January 2023 until 31 March 2028.  Budget 2024 extends the application of the EPL until 31 March 2029.

Other measures that might affect some companies in the project finance sector include:

 

Landfill tax rates

From 1 April 2025, the standard landfill tax rate increases to £126.15 per tonne with the lower rate increasing to £4.05 per tonne.

 

Multiple Dwellings Relief (MDR)

MDR reduces the stamp duty land tax (SDLT) payable when a company (or individual) purchases two or more dwellings in one transaction or as part of a series of linked transactions.  This relief will be abolished from 1 June 2024.

 

If you have any questions regarding the above or would like to speak to someone at Operis about how the UK Budget 2024 will impact on your transactions, please don’t hesitate to get in touch: info@operis.com

Share now

Authors

CONTACT US

Please get in touch with either of our regional offices.

https://www.operis.com/wp-content/uploads/2022/11/22_09_Chris_A-0376.jpg
Chris Aldred
Director

+44 207 562 0433

[javascript protected email address]
https://www.operis.com/wp-content/uploads/2021/03/Jun-Tao-500x500.png
Jun Tao
Director

+44 207 562 0428

[javascript protected email address]
https://www.operis.com/wp-content/uploads/2021/04/019A5891_Michael.jpg
Michael Jarman
Director

+1 647 243 8016

[javascript protected email address]
https://www.operis.com/wp-content/uploads/2021/05/Philip-Allen-500x500.jpg
Philip Allen
Head of Training [javascript protected email address]

Operis Europe

View Google Map
+44 207 562 0400
[javascript protected email address]

Operis North America

View Google Map
+1 647 846 7382
[javascript protected email address]

CONTACT US

Discuss your requirements with us

https://www.operis.com/wp-content/uploads/2022/11/22_09_Chris_A-0376.jpg
Chris Aldred
Director

+44 207 562 0433

[javascript protected email address]
Name(Required)
This field is for validation purposes and should be left unchanged.