BUDGET 2011: The round-up

Help for small businesses

  • Corporation Tax will be cut by 2% in April, not 1% as previously planned and the Bank levy will be adjusted so the banks do not pay less tax as a result.
  • A moratorium that means no new regulation on firms with fewer than 10 staff for three years.
  • The Business Rate Relief holiday for small firms will be extended for another year.
  • 21 "enterprise zones" to be launched, backed by tax incentives. The first 10 will be: Birmingham, Solihull, Leeds, Tyneside, Bristol, Black Country, Derbyshire, Nottinghamshire, Sheffield and a site in London to be chosen by the mayor. These zones will be given simplified planning rules, superfast broadband and tax breaks for businesses
  • 43 tax reliefs to be scrapped as part of a simplification of tax code.
  • Tax relief on the Enterprise Investment Scheme will increase from 20% to 30% in April. There will also be a 15% increase in credit from banks to start-ups.
  • From April 6 2011, the lifetime limit on capital gains qualifying for Entrepreneurs' Relief will double to £10m.
  • Research and development tax credits for small to medium sized businesses will be raised to 200% next month, and to 225% in 2012.
  • Changes to the Controlled Foreign Company rules will take affect in 2012. They will include an effective tax rate on overseas financing income of 5.75%.

Jobs and employees

  • Funding for 12 further university technical colleges.
  • 40,000 new apprenticeships for young people out of work.
  • Funding for 100,000 work experience placements.

Fuel

  • Fuel duty will be cut by 1p per litre from 6pm tonight.
  • The planned 4p per litre rise that was due in April will be delayed to 2012. The VAT on fuel will not be reduced.

Cigarettes and Alcohol

  • Tobacco duty rates up by 2% above inflation, duty regime to be reformed.
  • No changes to alcohol duty rates.

Personal Tax

  • Personal tax allowance will go up by £630 to £8,105 next April. That means 1.1m people will have been taken out of tax altogether.
  • Inheritance tax to be cut for people who leave 10% or more of their estate to charity. Osborne predicts charities will raise £300m from this.
  • Consultation on long-term plan to merge Income Tax and National Insurance.
  • 50% top rate of income tax to remain, but there will be a future review of how much it raises.

Missed the Budget? Here is the full transcript of Osborne's speech.

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