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Comments from Andy Scott on today’s Budget

George Osborne delivered his first main budget today.

If you want to read the Revenue Budget documents in full, PDFs are available by clicking on the links below.  I would be careful about printing them off, as one of the documents runs to 240 pages!

HMRC Budget Overview

HM Treasury

The main points are as follows:

• Approved tax-free mileage rate increases to 45p from 40p from 6 April 2011

• Income Tax Relief on Enterprise Investment Scheme qualifying shares to increase from 20% to 30% from 6 April 2011

• Company car tax will reduce on cars with CO2 emissions of between 95g/km and 220g/km from 2013-14

• Car fuel benefit will increase from 6 April 2011

• Entrepreneur’s relief that is given when you sell a qualifying business increases from £5 million to £10 million from 6 April 2011. The tax rate on the business sale remains at 10%

• Capital Gains Exempt amount increases to £10,600 from 6 April 2011

• The small company Corporation Tax rate reduces to 20% from 1 April 2011. The current rate is 21%

• The main rate of Corporation Tax reduces to 26% from 28% from 1 April 2011

• The main rate of Corporation Tax reduces further to 25% on 1 April 2012

• Accelerated Capital Allowance relief is available on items of equipment that have a useful life of 8 years or less

• Increased tax allowances for Research and Development expenditure from 1 April 2011

• Duty rise of 4p on a pint of beer, 15p on a bottle of wine and 54p on a bottle of spirits to take effect on 28 March 2011

• Duty on tobacco to be increased from 6pm today

• Purchasers of a number of properties at once may pay less Stamp Duty Land tax

• Stamp Duty Land tax avoidance schemes will be legislated against

• VAT Registration limit increased to £73,000 from 1st April 2011. Deregistration limit increased to £71,000

• Non-doms may pay more tax in the future

If you would like to speak to me about these points, or anything else, please get in touch.

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