UK Budget 2010 – Summary of main points for small businesses 24 March 2010

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.

HM Treasury – ‘official’ site