The Chancellor has delivered his Budget to Parliament
- Changes in income taxation
- Employment allowance
- Corporation taxes
- Changes in consumer and welfare taxation
Income Taxes PAYE and NIC
Tax free the allowance will reach £9,440 with the single largest cash increase in its history. From 6 April 2014 the government is planning to bring personal allowance to £ 10 000.
At the same time lowered salary threshold for 40% income tax rate. Now everybody earning from 32,010 to 150 annually will pay taxes at higher rate.
From April 2014 every business and charity in the UK will be entitled to a £2,000 Employment Allowance to reduce their employer National Insurance contributions (NICs) bill each year. The chancellor highlighted a number of incentives aimed at stimulating UK business and entrepreneurship. Employment allowance offers employers up to £ 2000 off their national insurance bill. We believe that this is to be a very good incentives because the employer would notice almost immediate effect in relief.
As a result, 450,000 small employers will pay no NICs at all in 2014-15
Corporation Tax to be cut from 21% to 20% in 2015 making the UK tax system the most competitive in the G20.
Capital gain tax (CGT) holiday for the seed enterprises investment scheme is to be extended. The chancellor has introduced CGT relief on the sale of business to their employees. Research and development credit is also being increased to 10%.
The VAT registration threshold for UK established business will increase from £ 77 000 to £ 79 000 on 1 April 2013. The deregistration threshold will increase from £ 75 000 to £ 77 000.
Tax relief for investment in social enterprises
It was announced to restrict the deduction against the value of a person's estate on death for IHT purposes for certain loans - potentially including loans to acquire assets not chargeable to IHT.
Other changes in taxation
Cancellation of the fuel duty
In housing -Shared equity schemes extended, with interest-free loans for homebuyers up to 20% of value of new-build properties
Bank guarantees to underpin £130bn of new mortgage lending for three years from 2014
In Family - 20% tax relief on childcare up to £6,000 per child from 2015
Tax evasion and avoidance
While stressing that the UK is open for business, George Osborne also reemphasised the government's determination to tackle tax evasion and avoidance.