In the menu to the left there are separate links to announcements on VAT and other measures relevant to businesses.
All announcements for businesses.
The Government will introduce a levy based on banks’ balance sheets from 1 January 2011, intended to encourage banks to move to less risky funding profiles.
The Government believes that banks should make a fair contribution in respect of the potential risks they pose to the UK financial system and wider economy.
The levy is not insurance against failure nor a fund for future resolution, it is a contribution reflective of economic risk.
Final details will be published later this year, following consultation.
HM Treasury has published more information (Opens new window)
The Chancellor has announced that:
The Government has announced that the rates of writing-down allowances (WDAs) for new and unrelieved expenditure on plant and machinery will be reduced:
Expenditure on long life assets, thermal insulation, integral features and cars with emissions of 160g/km or more (in the case of cars purchased on or after April 2009) is allocated to the special rate pool.
These rate changes will take effect from 1 April 2012 (for corporation tax) or 6 April 2012 (for income tax).
For businesses whose chargeable period spans 1 April (corporation tax) or 6 April (income tax) there will be a hybrid rate for unrelieved expenditure in any pool, including single asset pools. There will be two hybrid rates, one for expenditure previously relieved at 20 per cent and the second for expenditure previously relieved at 10 per cent.
The annual Investment Allowance (AIA) allows most businesses, regardless of size, to reduce their taxable profits by the full amount of their annual capital expenditure on most plant or machinery (apart from cars) up to a maximum amount, which is currently £100,000 a year.
The maximum amount of the AIA will be reduced to £25,000 a year with effect from April 2012. Details of the transitional provisions will be published in good time before the reduction takes effect.
The Government understands the importance of the whole corporate tax system to business and will set out a more detailed programme for reform in the autumn. This will allow it to take a considered approach to implementing tax reforms and to listen to the needs of business through greater consultation. The Government will provide greater certainty for business by committing to principles for corporate tax reforms. In particular, it intends to develop its view that in general a broad tax base, a low rate and a more territorial approach will improve competitiveness. It will establish a business forum, chaired by the Exchequer Secretary, to consult with multinational businesses on the UK's tax competitiveness, including the long-term aims of reform of the corporate tax system.
The Budget announcements include confirmation of the Government’s intention to reform the Controlled Foreign Company (CFC) regime. Consultation will take place over the summer on interim improvements to be legislated in spring 2011 to make the current rules easier to operate and where possible increase competitiveness.
Wider reform will be legislated in spring 2012 allowing time to consider carefully how to make the rules more competitive, to enhance long-term stability, and provide adequate protection of the UK tax base.
The Government has also stated that it will move to a more territorial basis for taxing the profits of foreign branches, and will consult in summer 2010 on options for retaining foreign branch loss relief as part of this, reforming the rules in 2011.
