George Osborne
announced tax cuts to help voters with the spiralling cost of living and tax
breaks to benefit businesses and promote the UK as “the place” to start and
grow business in Europe.
The Autumn Statement
and previous announcements largely removed the surprise factor from the Budget,
such as the drop in the additional rate of income tax to 45%, a step towards
unifying the main rate and small profits rate of corporation tax, a cap on
income tax reliefs and the introduction of a new statutory residence test. The Budget merely accelerated or stalled what
we already knew, as opposed to excite and inspire what we didn’t.
Below sets out the
key data of the tax highlights from the 2013 Budget:
Personal allowance –
the tax-free allowance will increase to £10,000 from April 2014.
Corporation tax – a
single rate of 20% for companies from April 2015.
Employment Allowance
– a £2,000 allowance for businesses to set against their employer national
insurance contributions from April 2014.
State pension
reforms – a single-tier state pension of £144 per week will be introduced from
2016.
Pension allowances –
the annual allowance for pension contributions will reduce from £50,000 to
£40,000 as from 2014/15.
Childcare scheme – a
new tax-free childcare scheme, worth up to £1,200 for each child, to be phased
in from autumn 2015.
Mortgage lending – a
government backed “help to buy” scheme to guarantee up to £130bn of home loans
to assist house buyers who cannot afford a large deposit.
Seed Enterprise
Investment Scheme – a one year extension of capital gains tax reinvestment
relief.
If you wish
to discuss any issues concerning the Budget please feel free to contact:
(Uxbridge
office): Simon Boxall, t:
01895 236335, e: simon.boxall@wardwilliams.co.uk
(Weybridge
office): Sarah Brock, t: 01932 830664, e: sarah.brock@wardwilliams.co.uk
(Sunninghill
office): Kath van Eyken, t: 01344 624114, e: kath.vaneyken@wardwilliams.co.uk
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