RESEARCH & DEVELOPMENT (R&D)
TAX CREDIT RATES
For small and medium sized enterprises the R&D rate will increase from 225% to 230%.
For large enterprises the above the line credit will increase from 10% to 11%.
These changes will take efect from 1 April 2015.
The cost of materials incorporated into products sold on will no longer be qualifying expenditure for R&D tax credits from 1 April 2015.
A new advance assurance scheme will be introduced for small businesses making their irst claim for R&D tax credits.
CORPORATION TAX – DEVOLUTION TO NORTHERN IRELAND
The government recognises the arguments for devolving the powers for setting the rate of corporation tax to Northern Ireland given its land border with the very low corporation tax environment of the Republic of Ireland.
Before this power can be transferred, the Northern Ireland Executive must agree budgets for 2015/16 and ensure its inances are on a sustainable footing for the future.
The Northern Ireland Executive is currently taking part in talks aimed at resolving a number of issues.
EMPLOYER NATIONAL INSURANCE CONTRIBUTIONS (NICs)
Employer NICs up to the upper earnings limit for apprentices aged under 25 will be abolished from April 2016
The £2,000 Employment Allowance for employer NICs will be extended to those households who employ care and support workers from April 2015.
SMALL BUSINESS RATE RELIEF
The doubling of the Small Business Rate Relief was extended to April 2016. Approximately 385,000 of the smallest businesses will continue to receive 100% relief from business rates.
The 2% cap on the RPI increase in business rates multiplier was also extended until April 2016.
Retail and food and drink premises with a rateable value of £50,000 and below will get an increased business rates discount of £1,500 up to the state aid limits for 1 year from 1 April 2015.
CHILDREN’S TELEVISION TAX RELIEF
A new corporation tax relief for the production of children’s television programmes will be available at a rate of 25% on qualifying production expenditure from 1 April 2015.
ORCHESTRA TAX RELIEF
The government will consult in early 2015 on the introduction of an orchestra corporation tax relief from 1 April 2016.
HIGH-END TELEVISION TAX RELIEF
The government will explore whether to reduce the minimum UK expenditure for high-end TV relief from 25% to 10% and modernise the cultural test, to bring the relief in line with ilm tax relief.
BANK LOSS RELIEF RESTRICTION
The amount of a bank’s annual proit that can be ofset by carried forward losses will be restricted to 50% from 1 April 2015.
The restriction will apply to losses accruing up to 1 April 2015 and will include an exemption for losses incurred in the irst 5 years of a bank’s authorisation.
OIL AND GAS
SUPPLEMENTARY CHARGE AND RING FENCE EXPENDITURE
The rate of the supplementary charge will reduce from 32% to 30% from 1 January 2015. The government will aim to reduce the rate further in a sustainable way.
There was also an extension to the ring fence expenditure supplement to 10 years for ofshore oil and gas activities.
HIGH PRESSURE, HIGH TEMPERATURE CLUSTER AREA ALLOWANCE
Legislation is being introduced to create a new cluster area allowance to support the development of high pressure, high temperature projects and encourage exploration and appraisal activity in the surrounding area.
The allowance will exempt a portion of the company’s proit from the supplementary charge equal to 62.5% of the qualifying capital expenditure a company incurs in relation to a cluster area on or after 3 December 2014.
The government will seek to extend the Enterprise Zone in Nottingham to a site in Derby and will consider the case for further extensions to existing Enterprise Zones at the Budget.