10 AUTUMN STATEMENT l 17 November 2022 Transfer pricing Large multinational businesses operating in the UK will have to keep and retain transfer pricing documentation in a prescribed and standardised format set out by the OECD. This will help HMRC identify risks and conduct transfer pricing investigations more efficiently. Windfall taxes The energy profits levy will rise from 25% to 35% from 1 January 2023. The investment allowance will be reduced to 29% for all investment expenditure other than on decarbonisation. A temporary electricity generator levy of 45% will be charged on ‘extraordinary returns’ from low-carbon UK electricity generation. SEPTEMBER MINI-BUDGET MEASURES Many of the proposals that emerged in Kwasi Kwarteng’s ‘miniBudget’ on 23 September 2022 have been reversed. However, some remain. The more notable surviving changes are: National insurance contributions The 1.25 percentage points increases to all 2022/23 class 1 and class 4 NIC rates initially introduced by Rishi Sunak as Chancellor were scrapped with effect from 6 November 2022. The revised rates are shown on page 12. The 1.25% health and social care levy, which was due to replace the NICs increase from 2023/24, was also abandoned. Stamp duties From 23 September 2022, SDLT rates for residential property were revised, increasing the 0% band threshold from £125,000 to £250,000. The government also increased relief for first-time buyers, raising the 0% band threshold from £300,000 to £425,000 and the maximum value of property on which they can claim the relief from £500,000 to £625,000. These changes only affect England and Northern Ireland.
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