Budget highlights
George Osborne described his second budget as a 'Budget for growth' or in other words a 'Budget for making things, not for making things up'.
It is intended to be fiscally neutral with several ambitious aims, including making the UK the most competitive place to start, grow and finance a business.
Among the Budget highlights are:
| - | The Government will consult on the integration of income tax and national insurance contributions. |
| - | There is to be a bonfire of tax reliefs including the abolition of tax freedom for Tax Reserve Certificate interest. Furthermore, late night taxis, cycle to work days and tax free luncheon vouchers are to go. |
| - | Enterprise investment schemes (EISs) and venture capital trusts (VCTs) will be reformed, increasing the rate of tax relief on EISs to 30% from April 2011, and increasing the investment limit to £1m and raising the company qualifying limits from April 2012. |
| - | The rate of corporation tax will be cut by an extra 1% to 26% from this April, with the small profits rate reduced to 20% as previously announced. The small business rate relief holiday will be extended to 1 October 2012. |
| - | The rate of R&D tax credit for small and medium-sized enterprises (SMEs) will be increased to 200% from this April and to 225% from April 2012 and some of the restrictions will be removed. |
| - | The lifetime limit on capital gains that qualify for entrepreneurs' relief (a 10% tax rate on gains) will rise to £10m from 6 April 2011. |
| - | There will be an increase in the annual charge for non-domiciled individuals who have been resident in the UK for over 12 years from April 2012. There will be various other changes to the taxation of 'non-doms' and the definition of residence will be put on a statutory basis. |
| - | Charities are to benefit from a range of reforms to their tax position, including simplification of gift aid and a special new inheritance tax relief for gifts to charity. |
| - | Fuel duties will generally be lowered to offset the impact of rising oil costs. At the same time the approved mileage allowance payments (AMAPs) will be increased to allow employers to pay 45p a mile on the first 10,000 miles and 25p thereafter. |
| - | The Business Payment Support Service to allow negotiation of time to pay agreements for those struggling to pay their taxes will also continue. |
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For further information on how the Budget will affect you and your business contact your local office or email your enquiry.
