The main announcements for all businesses are shown below. These are followed by a list of all announcements which may be of interest to businesses. More details can be found in the Overview of Tax Legislation and Rates (OOTLAR) document.
Corporation Tax rates Financial Years 2012, 2013 and 2014
Legislation will be introduced in Finance Bill 2012 to reduce:
Finance Bill 2012 also sets the small profit rates at 20 per cent for the Financial Year commencing 1 April 2012.
Legislation will be introduced in Finance Bill 2013 to reduce the main rate of Corporation Tax for non ring fence profits to 22 per cent for the Financial Year commencing 1 April 2014.
Tax simplification for small businesses
Following the Office of Tax Simplification review of small business taxation, the government will consult on introducing a voluntary cash basis for unincorporated businesses up to the VAT registration threshold, with a view to introducing legislation in Finance Bill 2013. It will also consult on a simplified expenses system for business use of cars, motorcycles and home. Finally, the government will also consult on proposals to introduce a disincorporation relief. The consultation will look at the potential demand for such a relief as well as the practicalities of how it would work.
Making tax easier, quicker and simpler for small business
Small businesses make a vital contribution to the UK economy. A document published today entitled 'Making tax easier, quicker and simpler for small businesses', sets out how the Government and HMRC are making the tax system easier for small businesses to understand and simpler to deal with. It responds to the Office of Tax Simplification's recent report on small business taxation, and sets out proposed changes to the tax rules and a number of HMRC initiatives that will make the tax system easier, quicker and simpler for SMEs.
Seed Enterprise Investment Scheme (SEIS)
As announced in the Autumn Statement 2011, legislation will be included in Finance Bill 2012 to introduce a new Seed Enterprise Investment Scheme. Following consultation, changes have been made to the legislation to allow companies:
Legislation will be introduced in Finance Bill 2012 to allow companies to elect to apply a 10 per cent Corporation Tax rate to a proportion of profits attributable to patent and certain other qualifying intellectual property from 1 April 2013. In the first year this proportion will be 60 per cent and increase annually to 100 per cent from April 2017.
Corporation Tax reliefs for the creative sector
The government will introduce Corporation Tax reliefs for the production of culturally British video games, television animation programmes and high-end television productions. Consultation on the design will take place over the summer. Legislation will be in Finance Bill 2013 and will take effect from 1 April 2013, subject to State aid approval.