Budget for Business?
George Osborne Chancellor of the Exchequer has delivered his eighth budget. He has revised the UK growth figures down to 2% which he states will still means that we have the fastest growth from a western economy. He has also announced that the UK will have a million new jobs by 2020. With changes to corporation tax and small business relief what are the key points from the budget that may impact on your business?
The Chancellor has told us that he expects inflation to be 0.7% in 2016 which will impact on the cost of borrowing and that he has missed his debt target. Here are the main points for business:
- Corporation tax will fall from 20% to 17% by 2020
- Annual threshold for small business relief will be raised from £6,000 to a maximum of £15,000 which will exempt 600,000 companies
- Corporation tax loopholes and tax minimisation schemes will be closed raising £9bn
- HS3 and Crossrail 2 to get the go-ahead
- £230m earmarked for road improvements
- Insurance premium tax to rise by 1%
- Changes to commercial stamp duty on properties up to £150,000 is 0%, then 2% on next £100,000 and a top rate of 5% for properties over £250,000
- New 2% rate for high-value leases with net present value of £5m
- Petroleum revenue tax to be “effectively abolished”
- Fuel duty frozen at current rate
- Plans to let all pupils study maths up to the age of 18 which will hopefully improve young peoples maths ability
It doesn’t seem to have been a budget that hits businesses too much and the stock market seems to be in favour. There is also some good news for employees with an increase to the tax-free allowance of £11,500 and a state-backed savings scheme worth up to £1,200 over four years for lower paid workers. All in all there wasn’t the expected hit on businesses.