Some very good news for everyone.
On 1st April:
· Corporation tax was cut by 2 per cent to 21 per cent. It has fallen from 28 per cent in 2010 and will fall further to 20 per cent in April 2015, making it the lowest corporation tax rate in the G7.
· Taxes on business investment were virtually abolished for most businesses. The annual investment allowance has now been doubled to £500,000, and has been extended by a further year to December 2015. This means 99.8 per cent of businesses could pay no tax on investment.
· Business rates were reformed so that:
o The annual increase is now capped at two per cent;
o The small business rates relief has been extended for a further year, so that over half a million of the smallest businesses pay reduced rates and over a third of a million pay no rates at all; and
o Targeted help for the high street in the form of a £1,000 discount for retail properties takes effect, benefitting around 300,000 shops, pubs and restaurants
· Fuel duty has been frozen again.
· The income tax-free personal allowance increases to £10,000. 26 million taxpayers will benefit, with a further 200,000 taken out of paying income tax altogether. From April, typical basic rate taxpayers will have gained by £705 from all increases announced by this Government. Three million people on low incomes will be taken out of income tax altogether.
· Employer National Insurance Contributions will be cut by up to £2,000. This new Employment Allowance will benefit over one and a quarter million employers, over 90 per cent of them small businesses. 400,000 small businesses will no longer pay employer National Insurance at all.