Boost to businesses?

publication date: Mar 25, 2010

In order to provide further cash flow support and an incentive to increase business investment the Annual Investment Allowance has been doubled to £100,000 from 1 April 2010 (for companies) and from 6 April 2010 (for unincorporated businesses). Capital expenditure above this threshold will continue to be eligible for standard capital allowances against taxable profits.

There is no change to the main or small company rate of corporation tax, but other measures to help businesses include:

-    a cut in business rates for small and medium sized firms, but for only one year
-    a 100 per cent First Year Allowance (FYA) for business expenditure on new and unused (not second hand) zero-emission goods vehicles

Counteracting these measures will be the increase in the national insurance rate of 1% for employers as well as employees and the self-employed from April 2011.