The reform’s implementation has been delayed by a year, meaning the transition to the new rules will take place in 2023 to 2024 and the new rules will come into force on 6 April 2024

There are a number of changes to the original proposals following feedback from accountants.

First, the government has decided to treat any excess profits arising during the transition year as a one-off separate item of taxable income, rather than as part of a business’s normal trading income. This treatment will minimise the impacts on allowances and means-tested benefits that were raised during the consultation.