WIREDGOV

The Chancellor started his Budget 2011 speech with a stated aim of reforming the nation's economy "for enduring growth".  He went on to talk about the need to support enterprise and a further acknowledgement that private sector growth is critical to the UK's economy.

Following the Budget announcements, Alex Henderson, tax partner at PwC, said:

“As expected the Chancellor has used the little room available to him to signal that he means business about enterprise in the UK. The Chancellor announced a whole range of measures which, while individually quite targeted, together add to a wide-ranging package.

“Of particular note are the doubling of Entrepreneurs’ relief, which has jumped from £1m to £10m in a year now, and corporation tax which has similarly been cut from 28% to a forecast 23% by 2015.”

Measures announced include:
Increase in Entrepreneurs' Relief from £5m to £10m
Extension of the Enterprise Investment Scheme
Announcement of the to-be-launched "StartUp Britain" campaign
Reiteration that the 50% tax rate must not become permanent
Increase in the rate of R&D tax credits for small companies
Extension of rate relief holiday for small businesses
3 year exemption for very small businesses from new regulation
further reduction in corporation tax over and above the annual reductions already announced (to 26% this year and gradually down to 23% by April 2014)

There was also reiterated commitment to making the UK competitive and attractive as a place to set up and grow businesses (including corporation tax reform) and a new exemption from remittance tax charges for non-doms who bring money into the UK to invest in UK businesses.

Ends

For more information contact: