Here are some of the key points from Budget 2010, as they apply to small businesses.
For more general points, and more detail on the Chancellor’s speech, we recommend the following reputable sources:
Main points for small businesses
- No new changes have been announced to VAT, Capital Gains Tax, Corporation Tax, or Income Tax
- Growth for 1.25% is predicted for 2010, with a slight downgrade to 3.25% fo 2010. Borrowing and debt are expected to be lower than previously forecast.
- Entrepreneurs’ relief – the lifetime allowance has been doubled to £2m. Entrepreneurs will pay 10% on any proceeds of business sales up to this threshold.
- A new £35m University Enterprise Capital fund will be launched to help graduates start-up in business, and to support innovation.
- There will be a temporary increase in the level of small business rate relief for one year, from 1 October 2010.
- The Annual Investment Allowance for businesses has been doubled to £100,000.
- Creation of a Small Business Credit Adjudicator – to help ensure that small businesses are treated fairly when applying for bank finance.
- Creation of a Capital Growth Fund to act as a new channel for private sector investment in UK SMEs alongside Government investment. Aimed at companies who need £2m to £10m in investment. Aim to create a £500m fund.
- Over the next 12 months, RBS and Lloyds have agreed to provide a total of £94 billion in new business loans – nearly half to SMEs.
- Government will introduce a tax relief for the UK video games, subject to EU approval of course.
- As previously announced, a new 50% income tax rate for incomes over £150,000 will start in April 2010, together with the gradual erosion of the personal allowance from £100,000.
- From 6th April, the annual ISA limit rises to £10,200, half of which can be held in cash.
- Various new measures have been announced to further clamp down on tax evasion.
- Inheritance tax allowance will be frozen at £325,000 until 2014-15.
- Stamp duty is frozen on properties costing less than £250,000 for ‘first time buyers’, apparently funded by a new 5% stamp duty rate on homes costing over £1m.
More to follow…
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