Budget 2012 was designed to prove that the UK ‘unashamedly backs businesses’ according to Chancellor George Osborne. Some of the measures announced include:
- The main rate of corporation tax reduced to 24 per cent from April 2012 – One per cent lower than announced in last year’s Budget.
- Plans to move to a simpler ‘cash accounts’ system for small businesses with a turnover of less than £77,000.
- Enhanced capital allowances of 100 per cent will be available in designated areas of the London Royal Docks Enterprise Zone, three Scottish Enterprise Zones in Irvine, Nigg and Dundee, and Deeside in North Wales.
- Increased flexibility for Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs) – From April the employee limit will rise to 250, the gross assets limit will more than double to £15 million before investment and £16 million after, the maximum annual investment in both schemes will also increase from £2 million to £5 million.
Other announcements made include amendments to R&D tax credits, as well as a number of anti-avoidance measures.
Please contact us if you would like to know more about any of these changes and how they could affect you and your business.