Chancellor George Osborne has finished delivering what he called his “Budget for makers, doers and savers”.
We’ve picked out the main measures that will affect businesses from his speech:
The big ones
- Sweeping reforms to pensions and personal savings.
- The Investment Allowance will be double to £500,000 and extended to the end of 2015, from April. This will make a huge difference in particular to manufacturers, production businesses and agriculture. Some 99.8% of businesses will get a 100% investment allowance.
- £7bn package to cut energy bills for British manufacturers.
- See the details on the government’s website.
Investment in SMEs
- The Seed Enterprise Investment Scheme, a hugely attractive scheme in incentivise investment in start-ups, will be made permanent.
- A Social Investment Tax Relief at a rate of 30% will encourage investment into social enterprises.
- Extending grants for smaller businesses to support 100,000 more apprenticeships.
Cost-savings for businesses
- Compensation worth £1bn to protect manufacturers from green taxes.
- Enterprise zones: business rates discounts and enhanced capital allowances will be extended for another three years.
- The rate of R&D tax credits for loss-making small businesses from 11% to 14.5%.
- The 2% increase in company car tax will be extended in 2017-18 and 2018-19.
- Tax on all long flights to be lowered to match the low rate for flights to the US, and tax in private flights introduced.
- Start-up support for new routes from regional airports.
- HS2 to “go further north faster”.
- £270m for Mersey Gateway Bridge.
- New tax and borrowing powers to improve transport infrastructure in Wales.
- Increase in HMRC budget
- Powers to allow them to claim from bank accounts where individuals refuse to pay
- Stamp duty of 15% on property bought through a corporate envelope
The oldies but goodies – previously announced but worth recapping
- Corporation tax, as previously noted, lowered to 21% this year.
- Employers no longer need to pay National Insurance Contributions for under 21s.
- An employment allowance will cover the first £2,000 of National Insurance for each business.