Today’s Budget – Summary of tax and national insurance implications

Here’s a useful summary of the key tax and national insurance changes announced in today’s Budget.

  • Personal allowance will be raised to £10,000 from next year, not from 2015 as previously planned.
  • Main rate of corporation tax will be reduced by 1% to 20% in April 2015 to show “Britain is open for business”. The bank levy rate will increase to 0.142% to offset this reduction.
  • From April 2014, businesses will be entitled to a £2,000 Employment Allowance per year towards their employer National Insurance contributions (NICs) bill. This will particularly help small businesses who want to hire their first employee or expand their workforce
  • Parents on joint incomes of up to £300,000 will be eligible for tax-free childcare support worth up to £1,200 a year, initially for children under the age of 5 from autumn 2015.
  • Capital gains tax relief for Seed Enterprise Investment Schemes (SEIS) will be extended for another two years.
  • New measures on tax avoidance and evasion.  Osborne announced that there will be new tax avoidance agreements with tax havens like Isle of Man, Guernsey and Jersey and the UK’s ?rst General Anti-Abuse Rule will be introduced.

  Here’s a link to a pdf of the full speech