23rd March 2022
Davenham’s overview of The Spring Statement 2022
On Wednesday 23rd March 2022, the Chancellor, delivered his Spring Statement focussing heavily on the impact of the “…unprovoked, premeditated attack Vladimir Putin launched on Ukraine” and its effect on the UK economy. Mr Sunak explained a number of initiatives being put in place supporting businesses which we have summarised below for our asset finance customers.
Fuel Duty cuts
In response to fuel prices reaching their highest ever levels, Rishi Sunak announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre in his Spring Statement, equivalent to a tax cut of circa £2.4 billion over the next year – this change became effective at 6pm on the day the Spring Statement was delivered. When comparing to uprating fuel duty in 2022-23, cutting fuel duty to this level will deliver savings for consumers worth over £5 billion over the next 12 months, broken down as follows based on average fuel consumption:
Exemptions for green technology
Annual Investment Allowance
The temporary £1 million level of the Annual Investment Allowance has been extended to 31 March 2023 to support businesses to invest and grow. The government is also helping firms to adopt new digital technologies, offering eligible SMEs a 50% discount on approved software worth up to £5,000.
Super Deduction Tax Relief still available
The Chancellor introduced the temporary super-deduction in his 2021 Spring Budget - the biggest two-year business tax cut in modern British history. Under the super-deduction, for every pound a company invests into new, unused and qualifying plant and machinery assets from 1st April 2021 to 31st March 2023, their taxes are cut by up to 25p.
In his 2022 Spring Statement, Rishi Sunak announced that the government will be planning to encourage greater business investment once the super-deduction ends in 2023 – further details will be announced at a later date.
If you have any queries or concerns as a result of any of the issued raised by the Spring Statement, please call the Davenham Asset Finance team on 0161 832 8484. We can offer alternative finance support by releasing funds from new or existing assets with affordable repayment plans.
Fuel Duty cuts
In response to fuel prices reaching their highest ever levels, Rishi Sunak announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre in his Spring Statement, equivalent to a tax cut of circa £2.4 billion over the next year – this change became effective at 6pm on the day the Spring Statement was delivered. When comparing to uprating fuel duty in 2022-23, cutting fuel duty to this level will deliver savings for consumers worth over £5 billion over the next 12 months, broken down as follows based on average fuel consumption:
- the average UK car driver will save around £100
- an average van driver will save approx. £200
- hauliers can expect to save around £1,500.
Exemptions for green technology
- Making green technology, including solar panels and heat pumps, exempt from business rates from April 2022 (England only) will save businesses an extra £35 million in 2022-23.
- A 100% relief for eligible low-carbon heat networks which have their own rates bill will also be available.
- Reduction of VAT on energy savings materials (ESM) from 5% to 0% for homeowners.
Annual Investment Allowance
The temporary £1 million level of the Annual Investment Allowance has been extended to 31 March 2023 to support businesses to invest and grow. The government is also helping firms to adopt new digital technologies, offering eligible SMEs a 50% discount on approved software worth up to £5,000.
Super Deduction Tax Relief still available
The Chancellor introduced the temporary super-deduction in his 2021 Spring Budget - the biggest two-year business tax cut in modern British history. Under the super-deduction, for every pound a company invests into new, unused and qualifying plant and machinery assets from 1st April 2021 to 31st March 2023, their taxes are cut by up to 25p.
In his 2022 Spring Statement, Rishi Sunak announced that the government will be planning to encourage greater business investment once the super-deduction ends in 2023 – further details will be announced at a later date.
If you have any queries or concerns as a result of any of the issued raised by the Spring Statement, please call the Davenham Asset Finance team on 0161 832 8484. We can offer alternative finance support by releasing funds from new or existing assets with affordable repayment plans.