During the budget today the Chancellor outlined a series of tax breaks, with the main one being a cut in corporation tax from 21% next year to 20% from April 2015.
There was also the introduction of an allowance against the first £2,000 of employer national insurance for every company, which the chancellor said would help employment. Some 450,000 small firms, over 30% of the country’s employers – paying no ‘jobs tax’. This will be implemented from April 2014.
Main Budget tax proposals
- Date set for increase in the personal allowance to £10,000.
- New scheme for tax free childcare.
- Further reduction in the main rate of corporation tax to 20% from 1 April 2015.
- Employee-shareholder contracts will be exempt from income tax and NIC for the first £2,000 of shares received.
- The introduction of an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 NIC liability from April 2014.
- A capital gains tax re-investment relief for gains made in the tax year 2013/14 where the gain is invested in Seed Enterprise Investment Scheme shares.