During the Spring Budget the Chancellor Jeremy Hunt has said that he will shortly publish a draft legislation to increase the VAT threshold.
Hunt has told MPs in the House of Commons on Wednesday that the VAT threshold will increase from £80,000 to £90,000 from 1 April.
The Chancellor said that this will help “tens of thousands of businesses” and he will also provide £200 million of funding to extend the Loan Recovery Scheme to help businesses grow.
The Chancellor will take further steps to boost investment” in the UK with “full expensing to apply to leased assets.”
Hunt said, “In the autumn statement I announced we would introduce permanent full expensing, a £10bn tax cut for businesses that gives the UK the most attractive investment tax regime of any large European or G7 country.
“It was welcomed by over 200 business leaders, with the CBI saying it was a game changer and the single most transformational thing we could do to fire up the British economy.
“Today I take further steps to boost investment.
“Having listened to calls from the CBI and Make UK, we will shortly publish draft legislation for full expensing to apply to leased assets, a change I intend to bring in as soon as it is affordable.”
The Chancellor told MPs, “I will provide £200 million of funding to extend the Recovery Loan Scheme as it transitions to the Growth Guarantee Scheme, helping 11,000 SMEs access the finance they need.”
Hunt added, “I will reduce the administrative and financial impact of VAT by increasing the VAT registration threshold from £85,000 to £90,000 from April 1 – the first increase in seven years.
“This will bring tens of thousands of businesses out of paying VAT altogether and encourage many more to invest and grow.”
