The Budget and business

The key announcements at a glance

  • New ‘entrepreneurs’ relief’ CGT rate of 10 per cent on £1m lifetime allowance.
  • VAT threshold rises from £64,000 to £67,000.
  • More than 500,000 businesses can write off up to £1,000 of historic capital investment.
  • Draft legislation for tax rules that govern the way family businesses distribute their profits delayed until 2009.
  • Small company corporation tax rate rises from 20 per cent to 21 per cent.
  • Annual investment allowance of £50,000 capital gains tax (CGT) on business assets increased to 18 per cent from 6 April.
  • A temporary 20 per cent increase in Small Firms Loan Guarantee to ease the impact of the credit crunch.
  • Plan for small firms to win 30 per cent of all public sector work in the next five years.
  • Plant and machinery allowance rate drops from 25 per cent to 20 per cent.
  • Hotels, industrial and agricultural buildings annual allowance falls from 4 per cent to 3 per cent.
  • New £30m Enterprise Capital Fund to provide mezzanine finance to growing firms.
  • A £12.5m capital fund to back female entrepreneurs.
  • Increase in small firms R&D (research and development) tax credit delayed and new EU state aid rules applied to restrict access.
  • Reforms to reduce regulatory burden.

To find out how your business may have been affected, please email or contact us with your enquiry.

esmartmoney
The articles featured in this digital magazine are for your general information and use only and are not intended to address your particular requirements. They should not be relied upon in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. For more information please visit www.goldminepublishing.com Go Back