Budget 2014

In the 2014 UK Budget delivered on the 19th March 2014, the Chancellor announced the following business tax measures;

•    a doubling of the AIA (Annual Investment Allowance) from £250,000 to £500,000 which will be available to businesses from 1 April 2014 (6 April for unincorporated businesses) to 31 December 2015;

•    an increase in the R&D tax credit for loss-making companies from 11% to 14.5% with effect from 1 April 2014;

•    an Annual Tax on Enveloped Dwellings (‘ATED’) for non-natural persons owning UK residential property valued at more than £500k (previously £2 million);

•    an extension of the 15% SDLT charge for UK residential property acquired by non-natural persons costing more than £500k (previously £2 million);

•    a new Corporation Tax relief for theatrical productions and touring theatrical productions;

•    removal of the time limit for the Seed Enterprise Investment Scheme (‘SEIS’) thereby making the legislation permanent;

•    extending Enhanced Capital Allowances (‘ECAs’) for zero emission goods vehicles until March 2018;

•    new legislation preventing companies obtaining a Corporate Tax advantage by transferring profits between group companies where this is part of tax avoidance arrangements.

For detailed information and advice on how these measures may affect you, please speak to your usual Beavis Morgan partner.

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