March 2011 Budget

For a change, this was an interesting and varied budget, much of which we like, and some of which we don’t!  In terms of impact on our clients, here are our headlines:

What we like:

1) Changes in EIS relief – 30% income tax relief from 6 April 2011, significantly increased investment limits from 6 April 2012.  Good news for independent film producers and others looking to raise private equity investment

2) Reduction in the headline rate of corporation tax to 26% from 1 April

3) Increase in Research & Development tax relief to 200% this year and 225% next year

4) Increase in Entrepreneurs’ Relief lifetime limit to £10m

5) Charitable giving incentives, in particular the reduction in IHT to 36% for Estates giving away at least 10% to charities

And some of things we don’t like:

1)  Increase in the “non-dom” opt out charge to £50K after 12 years

2) No immediate end in sight for the 50% income tax rate

3) The merging of income tax and national insurance – great idea in theory, we predict chaos in practice

For our detailed budget notes, please click here