hancellor George Osborne says his business tax changes were about “Businesses keeping more of their money to create jobs and invest in the future.”
The collection of class two national insurance contributions (NICs) will be moved into self-assessment. Business tax rates were cut.
Corporation tax will be reduced to 21 per cent, which Mr Osborne says will mean high street stores will get £1,000 off their rates. Every business in the country will get the ‘employment allowance’, a £2,000 cash-back on jobs.
Next year, Mr Osborne says corporation tax will reach 20 per cent and under 21s will be taken out of the jobs tax altogether.
He says: “Many of the enterprise zones we created are now flourishing – so the business rates discounts and enhanced capital allowances will be extended for another three years.
“I’m raising the rate of the R&D tax credit for loss-making small businesses from 11 per cent to 14.5 per cent.
“Two years ago, I launched the Seed Enterprise Investment Scheme to help finance start-ups. It has been a great success and I am making it permanent.
“We are backing investment into social enterprises with a social investment tax relief at a rate of 30 per cent.”
The European Commission approved the extension of film tax credit – and the Budget confirms the same approach will be now offered to theatre.
From this September, Mr Osborne says there will be a 20 per cent tax relief for qualifying productions, and 25 per cent for regional touring. The annual investment allowance was doubled to £500,000 and extended to the end of 2015.
Mr Osborne says 99.8 per cent of businesses will get a 100 per cent investment allowance.
He says: “Almost every business across Britain will pay no upfront tax when they invest in the future.
“It costs £2bn in the short term – so when we say: we’re going to get Britain investing; when we say we’re going to back growth around the country - we mean it.”