Simon Browning, tax partner at UHY Hacker Young in Nottingham, said: “George Osborne said this was a budget for building a resilient economy, one for do-ers and savers. As ever, the devil is in the detail, but overall this seems to be a budget which has a number of elements which will support economic growth.”
“This was a positive budget for businesses – the top line being cuts in corporation tax to 21% this year and then 20% in April 2015. A commitment to supporting UK manufacturing was also apparent as Mr Osborne announced a variety of measures to stimulate growth.
“The government has pledged to support businesses, introducing measures such as reductions in energy costs, which will save mid-sized manufacturers around £50,000 a year, and an extension to the Annual Investment Allowance to 2015, whilst also doubling it to £500,000. The planned introduction of the Employment Allowance of £2,000 will also help businesses.
“Business rate discounts and enhanced capital allowances in Enterprise Zones have been extended for a further three years to 2020. Mr Osborne also announced support for the scientific and creative industries with R&D credits for loss making companies extended to encourage innovation, together with tax relief for regional theatres and productions.
“By making the Seed Enterprise Investment Scheme permanent, the attraction of investing in early stage businesses is enhanced and should continue to help tax efficient fund raising for these businesses.
“While it is good news for businesses, owners will need to be aware of the continued tightening of HMRC regulations on tax avoidance and evasion and must ensure their tax affairs are in proper order to avoid penalties.
“Mr Osborne is keen to make the UK a more attractive place to do business and has recognised this throughout the budget this year.”