22 March 2013
Press ReleasesChancellor of the Exchequer George Osborne did not have much room for manoeuvre in his 2013 Budget yet has found a little to help many quarters of society.
The headline announcement is undoubtedly the reincarnation of Margaret Thatcher’s Right to Buy – George Osborne’s Help to Buy.
Ian Miles, Partner and Head of Private Client at Thames Valley accountants and business advisers James Cowper Kreston said: “This scheme, with interest free loans of up to 20 per cent of the value of the home available, should be a major boost for those wishing to get on to the property ladder or move up.
“House buyers will still need to find a five per cent deposit and it is limited to new build homes under £600,000, but this will be welcome for those wanting to move.
“More importantly it should provide a much needed boost to our much beleaguered housebuilding industry.”
Large businesses up and down the country will also be encouraged by the fall in corporation tax rates to just 20 per cent from April 2015. The UK corporation tax rate is now the lowest in the eurozone and half that of the rate in the US.
Sharon Bedford, Partner in James Cowper Kreston’s Business Tax team said: “This announcement is intended to send a strong message to the global business community that the UK is open for business.
“Small businesses may, however, have good cause to feel aggrieved as, whilst they have for the past three years paid corporation tax at 20 per cent, they will not benefit from this drop.”
There is some good news for small businesses and those setting up a business. “Osborne announced a National Insurance rebate for all businesses of up to £2,000,” says Sharon. “This is a smart way of helping small businesses and those setting up a new business as it delivers cash straight back to the business. And unlike previous announcements on National Insurance, this change applies equally across the UK and not just to local enterprise zones.”
Also announced in the Budget are new and much simpler accounting rules for sole traders and partnerships with a turnover under the VAT registration threshold, currently £79,000.
“These businesses will, from April this year, be able to complete much simpler forms of accountants based upon a cash-in, cash-out basis,” says Sharon. “This will save them time and money.”
Ian Miles, Partner, James Cowper Kreston LLP, Tel +44 (0)1491 848500 or email
