Billed as a “Budget for a Resilient UK”, Osborne hailed significant growth forecasts, while underpinning the need for economic security in his final statement before next year’s elections.
The biggest announcement for businesses was a doubling of the Annual Investment Allowance (AIA) for capital expenditure from £250,000 to £500,000 to the end of 2015, while from midnight tonight, tax on residential homes owned through a company will be extended from residential properties worth more than £2m to those worth more than £500,000.
As expected, the Chancellor announced a rise in the amount of income people receive tax-free to £10,500.
Other key announcements included capping the Carbon Price Floor and other green energy levies to reduce energy bills for businesses and consumers, the doubling in export finance to £3 billion, and raising the rate of R&D tax credit payable to loss making small and medium sized enterprises from 11% to 14.5% from April 2014.
Pensioners and savers also received good news as the Chancellor announced that cash and stocks and shares ISAs would be merged with a new upper limit of £15,000.
Changes to pensions include the removal of all tax restrictions on pensioners’ access to their pension, ending the requirement to buy an annuity, and the introduction of a new pensioner bond.
Paul Jones, managing partner at the Edgbaston firm said: “This has certainly been a budget for businesses, savers and pensioners.
“The most surprising announcement was the raising of the Annual Investment Allowance which will provide up to 100% tax relief for businesses on capital expenditure up to £500,000.
“This measure, along with the capping of green energy levies, should help businesses looking to grow.
“Individuals will also be pleased with measures to increase the personal tax allowances and major changes to pensions and savings.
“As usual we would urge businesses and individuals to study the small print to see what measures will affect them and how they can take advantage of them.”
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