TaxCorporate TaxTax exemptions revealed in ‘early budget’

Tax exemptions revealed in 'early budget'

One of the main changes following today's shock business budget announcement by the Treasury, will be a tax exemption for gains and losses on substantial shareholdings.

The Treasury believes this will reduce the tax burden for businesses by £150m per year.

The move has been designed to allow businesses to restructure quickly and ensure that decisions are made for commercial, and not tax reasons.

Other measures coming into effect on 1 April include a tax credit to boost research and development among larger companies, and relief on the costs of intellectual property, goodwill and other intangible assets. Gordon Brown believes this will be worth an initial £200m to UK business, rising to a maximum of £350m.

‘The government is determined to press ahead with a pro-enterprise, pro-competition and very importantly, pro-jobs agenda,? the paymaster-general, Dawn Primarolo, said today.

‘The three measures that have been announced today … are all about making sure that we continue to boost measures for productivity to close the productivity gap with our competitors and that we are creating the jobs that we need in our economy,’ she added.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter