George Osborne presented the 2013 Budget on Wednesday 20 March 2013.
This blog focuses on the direct and indirect tax measures announced, as well as the announcements made previously which affect the 2013-14 tax year and beyond.
It concentrates on the issues likely to affect you, your family and your business. To help you decipher what was said I have included some comments too.
If you have any questions please do not hesitate to contact me for advice.
Main Budget proposals
- The personal allowance for tax will increase to £10,000 from April 2014.
- Tax relief will be given for the first £6,000 of child care for each child (worth up to £1,200).
- The main rate of corporation tax rate (ie for larger companies) will decrease to 20% with effect from April 2015. This aligns the rate with that payable by small companies, and the two rates will be merged.
- All businesses will be eligible for relief for the first £2,000 of employer’s NI
- The limit for tax free loans for employees will increase to £10,000 from 6 April 2014.
- Hidden in the Budget paperwork are details of changes to the s455 ‘Loans to participators’ rules, which tighten up the rules for when a loan has been repaid.
Key announcements made previously
- The personal allowance for tax will increase by £1,335 to £9,440 from April 2013.
The Budget proposals may be subject to amendment in the Finance Act. You should contact me before taking any action as a result of the contents of this summary.
This blog is published for the information of clients. It provides only an overview of the main proposals announced by the Chancellor of the Exchequer in his Budget Statement, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.