Following this weeks budget the UK has the best corporation tax in the European Union. With the incentives below, this makes the UK a good place for companies seeking to set up foreign operations.
The Chancellor’s key business announcements in his 2012 budget included the following:
- Corporation tax cut to 24% from April 2012. By 2014 it will fall to 22%.
- Office for Budget Responsibility forecast of one million more jobs in the economy over five years.
- Low interest rates to small businesses via the National Loan Guarantee Scheme and expansion of the Enterprise Finance Guarantee.
- Enhanced capital allowances for businesses setting up in new Scottish enterprise zones in Dundee, Irvine and Nigg. A Welsh enterprise zone is to be created in Deeside.
- A new £370 million Development Fund for London to attract new business and jobs.
- A Consultation next month on simplifying the tax system for small firms with a turnover of up to £377,000.
- Government support for £3150 million of tax increment financing to help councils promote development and an extra £3270 million for the Growing Places Fund.
- Review on how Government can work better with the private sector on growing the economy to be conducted by Michael Heseltine
- New “above the line” research and development tax credit to be introduced next year.
- Publication of the National Planning Policy Framework in an overhaul of planning regulation.
- Tax relief for the video games, animation and high-end television production sectors.
- Government considering Enterprise Loans for young people to start their own business.
- Relaxation of Sunday trading laws on eight Sundays during the Olympics and Paralympics, starting July 22.
- No further changes to fuel duty and vehicle excise duty frozen for road hauliers.
- New Machine Games Duty for the gambling industry with a standard rate of 20% and a lower rate for low-prize machines of 5% of net takings.
- New gambling tax regime that will impose tax at the place of consumption, to discourage online gambling moving offshore.
- The Chancellor concluded that, “This country borrowed its way out of trouble. Now we’re going to earn our way out.”
To see how the Paragon Group can assist you in setting up business in the UK, please click here