Budget Summary 2014 - page 11

SDLT charities relief
Legislation will make it clear that a charity can claim relief from
SDLT on the proportion attributable to it of the purchase of
property jointly with a non-charity. This was announced in the
Autumn Statement 2013 and the change will take effect from Royal
Assent to the Finance Bill 2014.
BUSINESS TAX
Annual investment allowance (AIA)
The AIA will double to £500,000 for qualifying investment in plant
and machinery made on or after 1 April 2014 for corporation tax
and 6 April 2014 for income tax. This level of AIA will continue until
31 December 2015.
Zero-emission goods vehicles
The enhanced capital allowance for zero-emission goods vehicles
will be extended to 31 March 2018, but will be limited to
businesses that do not claim the plug-in van grant.
Corporation tax (CT)
As announced previously, the main rate of CT will be 21% from
April 2014 and 20% from April 2015. The small profits rate will
remain at 20% from April 2014.
Associated companies
The associated companies rules will be replaced in April 2015 with
simpler provisions based on 51% group membership.
Avoidance schemes involving transfer of corporate
profits
Companies will be prevented from obtaining a CT advantage by
transferring profits between companies within a group. Where a
company transfers all or a significant part of its profits to
another group member after 18 March 2014 as part of tax
avoidance arrangements, the company’s profits
will be taxed as though the transfer had
not occurred.
BUDGET
19 MARCH 2014
page 11
think ahead
Rethink your plans for
investment in new
business equipment.
The
annual investment
allowance gives businesses
immediate tax relief on the
purchase of most types of
equipment. The limit has
doubled to £500,000 a
year from April 2014. Get
advice about timing your
expenditure.
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