1% appears to make a magic number this year.

Corporation Tax Rates fall at least 1% – from 21% to 20% for the smaller businesses and from 28% to 26% for the largest businesses.  The Chancellor’s message is that Britain is “open for business” and this morning’s news seems to indicate that the point is already heard by global Companies.  However, it should be noted that coupled with this reduction in tax, there had been a pre-planned increase to Employers National Insurance of 1% from 6 April when contributions will rise from 12.8% to 13.8%. 

Owner Managers who extract income by dividends should note that this reduction in Corporation Tax, and increases in National Insurance will increase the efficiency of that policy.
Every individual utilising their personal allowance will find there are some savings to be enjoyed as the personal allowance is set to increase.  However, for employees and the self employed, this is matched by an increase of 1% on existing national insurance contributions.

Investment breaks and charitable giving are also being encouraged with this Budget :  increased relief for Research and Development expenditure;  increased  personal tax relief for individuals investing in  unquoted companies under the Enterprise Investment  Scheme ;  and Inheritance Tax reductions for charitable giving.

Click on the following link to read our Budget Summary . We are hopeful the small changes will help you progress some more significant changes in your own wealth and prosperity in the coming year. If you would like to understand the impact of any of the proposed changes on your position, or if you would like to arrange a meeting to explore how a change of even 1% can make a big difference, please call one of our Partners on 01727 838 255.