The Budget contained no major surprises.The Chancellor concentrated his tax efforts on support for small and medium sized businesses, technical research and innovation.Some of the changes made were as follows:
Research & development
The Treasury will improve the scope of research and development tax credits.
The minimum expenditure threshold is reduced to £10,000.
Capital allowances
The qualifying threshold for capital allowances for small and medium enterprises to become eligible for the 40% investment allowance will rise to £20 million.
The 100% IT investment allowance is extended to 31 March 2004.
VAT
The VAT threshold is increased to £56,000.Automatic fines will be abolished for late payment for up to 200,000 additional small businesses.
There were no changes in the rates of personal or corporation tax, although there were small rises in the capital gains tax annual exemption and the inheritance tax threshold.Personal tax allowances for 2003/04 are frozen at 2002/03 levels for under 65s.
Full details of the tax changes are now available on this site click on Data Centre.
If there are any points mentioned above or any other point in the Budget you would like to discuss please contact us.For details on how to do this click on the Contacts section.
Clive Jones - Clifford Towers, Chartered Accountants
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