As ever, pages of documents have been published backing up the Chancellor’s Budget speech made earlier today. We are analysing these and will soon be blogging more in depth analysis but in the meantime here are some headline changes:
- Corporation tax rate to be 20% from April 2015 – this will match the small profits corporation tax rate. So, CT is 24% now, will be 23% from 1 April 2013, 21% from 1 April 2014 and then 20% from 1 April 2015.
- CGT holiday for SEIS investment is extended to next year (on 50% of gains) – further detail from Cliona Kirby in her blog below.
- Abolition of stamp duty on shares in companies listed on growth markets – such as AIM and ISDX Growth Market; this measure is due to be implemented in the Finance Bill 2014. Again, more on this below.
- Employment allowance of £2,000 towards employer’s NICs – this measure will mean that around 450,000 of the smallest companies in the UK will no longer have to pay employer’s NICs.
- R&D “above the line” tax credit of 10% for larger companies.
- Tax avoidance – as well as the General Anti Abuse Rule, the Government are introducing various additional targeted anti-avoidance legislation to combat the avoidance of inheritance tax, corporation tax and SDLT.
- Income tax personal allowance raised to £10,000 from next year – a year earlier than previously anticipated. The Chancellor confirmed that there would be no introduction of a 10% income tax rate, instead describing the raise in personal allowance as the introduction of a “0% income tax rate”.
- No tax on loans of up to £10,000 by employers to employees – employers could previously make loans of up to £5,000 without there being any employment income tax or employer’s NICs.
- Inheritance tax – the freezing of the current IHT nil rate band at £325,000 will be extended until 2017/18.