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BUDGET 2013 at a glance

Good news for Beer Drinkers, Car Drivers,  Companies, Employers and Investors in start-up companies.

Many proposals do not apply for some time.

Corporation Taxes:

  • From April 2015, the main rate of Corporation Tax will be further reduced by 1% to 20%
  • From April 2015, the small profits rate and the main rate will be unified at 20%, thereby removing complex tax rate calculations
  • From April 2013, the headline rate of the R&D Large Company credit increases to 10% from the 9.1% rate proposed in the 2012 Budget
  • A disincorporation relief will be introduced for five years from April 2013 to allow a company with qualifying assets under £100,000 to transfer certain assets to its shareholders so that no Corporation Tax charge arises on the company on the transfer

Business Taxes:

  • From April 2014, businesses and charities will have an Employment Allowance of up to £2,000 per year towards their employer’s National Insurance Contributions bill
  • From April 2013, the VAT registration threshold will be increased to £79,000

Personal Taxes:

  • From 6 April 2014, the first £10,000 of income will be free from income tax, the personal allowance increasing by £560 to £10,000
  • From 6 April 2014, the 40% tax band will start at £41,865
  • From 6 April 2013, tax losses will be capped at the greater of £50,000 or 25% of income. Some reliefs will be exempt such as charitable reliefs and EIS and SEIS share loss relief
  • From autumn 2015, a new Tax-Free Childcare Scheme will be introduced for 20% of childcare costs up to £1,200 per child per year
  • The IHT nil-rate band will remain frozen at £325,000 until 2017-18

Investment Reliefs:

  • The annual CGT exemption will rise to £11,000 in April 2014 and £11,100 in April 2015
  • There will be a 50% relief against CGT chargeable on gains realised in 2013-14 that are reinvested in the Seed EIS in 2013-14 or 2014-15
  • Stamp Duty on shares for companies listed on certain growth exchanges such as AIM and ISDX will be abolished after April 2014
  • From 6 April 2013, Entrepreneurs’ Relief will be extended to cover gains made on shares acquired through the exercise of EMI options

Tax avoidance:

  • A new General Anti-Abuse Rule (GAAR) is being introduced
  • The use of offshore employment intermediaries to avoid paying income tax and NICs will be countered
  • A statutory residence test will be introduced from 6 April 2013

Other headlines:

  •  A new ‘Help To Buy’ loan finance scheme will assist homebuyers unable to fund deposits on house purchases
  • The fuel duty increase that was planned for 1 September 2013 is being cancelled
  • The general beer duty is being reduced by 1p per pint
  • The Bank Levy rate will be increased


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