On the latest ICAEW Insights podcast, we speak to Martin Wheatcroft about rising inflation and what that means for businesses, plus capital allowances reforms.

Inflation is rising at a record pace across the world, triggered by the COVID-19 pandemic and exacerbated by a perfect storm of world events, including the war in Ukraine. We explore the impacts of this, both negative and positive, and what it might mean for public finances.

We also take a look at the government’s plans for capital allowance reforms. As the end of the superdeducton approaches, the UK government is considering reforms to capital allowances to support and encourage business investment. ICAEW has responded to the government plans. Richard Jones from ICAEW’s Tax Faculty to discuss this and the ongoing delays to R&D processing.

Links:
- https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator
- https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2022
- https://www.imf.org/external/pubs/ft/fandd/basics/30-inflation.htm
- https://www.bbc.co.uk/news/business-12196322
- https://www.gov.uk/government/publications/potential-reforms-to-uks-capital-allowance-regime-inviting-views/potential-reforms-to-uks-capital-allowance-regime-inviting-views
- https://www.icaew.com/insights/tax-news/2022/may-2022/treasury-invites-views-on-reforming-uk-capital-allowance-regime
- https://www.icaew.com/insights/tax-news/2022/jul-2022/icaew-calls-for-more-innovative-thinking-on-capital-allowances-reform
- https://www.icaew.com/insights/tax-news/2022/may-2022/hmrc-suspends-payment-of-some-rd-tax-credit

Host:
Philippa Lamb

Guests:
- Martin Wheatcroft, financial strategy consultant
- Richard Jones, ICAEW’s technical manager, business tax

Producer:
Natalie Chisholm

Episode first published: 14 July 2022
Podcast recorded: June 2022