Category Archives: Budget – March 2011

Whilst it will be the unexpected 2% cut in the main rate of corporation tax which will no doubt feature in the headlines, the radical reform of the tax treatment of foreign profits is perhaps more significant to the international tax competiveness of the UK.  The Chancellor was reportedly hoping to announce that at least … Continue reading Corporation tax reform

Today’s Budget contains details of a new SDLT relief which will benefit purchasers of residential property who acquire more than one dwelling.  The relief will be introduced in Finance Bill 2011 with effect from Royal Assent. Where this relief is claimed the rate of SDLT will be determined by the mean consideration for the dwellings … Continue reading SDLT reform for bulk residential purchases

The Government announced a further increase in the bank levy and indicated that this was, in effect, to offset the 2% reduction in corporation tax from next year. In his speech, the Chancellor also made reference to some of the initiatives that will be funded by the projected £2.5 billion  that will be generated annually … Continue reading Bank Levy

From an Incentives perspective, the only real substantive points from today’s Budget relate to entrepreneurs’ relief and the eagerly awaited release of the controversial draft legislation on “disguised remuneration”.  As Natasha has already blogged, whilst the increase in the entrepreneurs’ relief lifetime limit to £10m is welcomed, the Chancellor’s decision not to remove or decrease … Continue reading Incentives Update

The Government has announced that from April 2012 the measure of inflation used to calculate increases in NICs rate bands, the CGT annual exempt amount and the annual ISA subscription limit will be changed from the retail prices index (“RPI”) to the consumer prices index (“CPI”), and that the default indexation assumption for all direct taxes will … Continue reading Stealth tax?

Up to 21 zones are proposed to be created, but there is no detail regarding the availability of enhanced capital allowances. The Budget report simply states that the Government will work with individual LEPs to consider the scope for introducing enhanced capital allowances to support zones where there is a strong focus on high value manufacturing. Whilst … Continue reading Enterprise Zones

The Chancellor announced plans to consult on the merger of income tax and NICs on the basis that operating two completely different systems “imposes totally unnecessary costs and complexity on employers, and costs the taxpayer in the extra burden it places on HM Revenue & Customs”.   A consultation document will be published later this year setting … Continue reading Income tax and NICs to become one ?

There’s precious little in the Budget concerning gambling duties. The way in which machines are taxed is due to change in 2012/13, with the banded licence fee regime of Amusement Machine Licence Duty (AMLD) being abolished and machine takings no longer being subject to standard rated VAT.  Under the new regime – of “Machine Games … Continue reading Gambling duties – no news is good news!

A lot of mixed messages in today’s Budget for the games industry. The proposal to significantly improve EIS and VCT reliefs, in particular, by increasing the annual investment limit to £10 million from £2 million (albeit with effect from 6 April 2012) should assist games companies in obtaining development finance.  EIS relief becomes much more interesting at this level.  We … Continue reading A mixed bag for games companies

There was no change to income tax rates, which remain at 2010/11 levels.  Whilst high earners will be disappointed by retention of  the 50% rate, the Chancellor did stress that it was a temporary measure and acknowledged that it could do lasting damage to the British economy. Realistically, it is difficult to see what else the Chancellor could say. The proposed increase … Continue reading Income tax rates and high earners