Search and rescue charities, hospices and blood bikes
Search and rescue, air ambulance and hospice charities will be
eligible for VAT refunds from 1 April 2015, as announced in
the Autumn Statement 2014. The VAT refunds scheme will be
extended to blood bike charities from the same date.
Corporation tax rate
The main rate of corporation tax will be 20% from 1 April 2015,
as previously announced, and will stay at 20% for the financial
year starting on 1 April 2016.
Annual investment allowance
The temporary £500,000 annual investment allowance comes
to an end on 31 December 2015. The Chancellor said that
a reduction to £25,000 from 1 January 2016 “would not be
remotely acceptable” and it would be set “at a much more
generous rate” in the Autumn Statement 2015.
The government will extend the period over which self-employed
farmers can average their profits for income tax from two years
to five years from April 2016. The details will be subject to
Research and development (R&D) tax credits
The above-the-line R&D credit will rise from 10% to 11% and the
rate of relief for the SME scheme will rise from 225% to 230%.
Qualifying expenditure for R&D tax credits will be restricted so
that the costs of materials incorporated in products that are sold
are not eligible for the relief. These measures were announced
in the Autumn Statement 2014 and will take
effect from 1 April 2015.
18 March 2015
The annual investment
allowance might well be
cut from January 2016.
Review the timing of
your capital investments,
especially where the
business year end
straddles 31 December