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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.

BUSINESS TAX

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.

Farmers’ averaging

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

consultation.

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.

BUDget

18 March 2015

think ahead

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

2015.

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