Legal news

2011 Budget

Jonathan Winston Jonathan Winston
1 min read

For business the main highlights of the recent budget were:

  1. An increase from £5m to £10m in the lifetime limit on capital gains tax which qualifies for Entrepreneurs Relief. This affects disposals after 6 April 2011.
  2. A reduction in the main rate of corporation tax from 28% to 26% from 1 April 2011. Further 1% reductions are scheduled for the next 3 years so that the rate is reduced to 23% by April 2014.
  3. An increase in R&D relief to 200% from 175% for expenditure incurred from 1 April 2011 and a further increase to 225% from April next year. These are subject to EU state aid approval. It is also proposed that the £10,000 minimum expenditure threshold is abolished from next year.

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