Budget 2013

Subdued elation for the aspiration nation

George Osborne delivered a surprisingly upbeat budget for what he has dubbed the ‘aspiration nation’, even if some of those dreams may have to wait another year before they are realised.  Nevertheless a raft of measures,  marginal in themselves, may well add up to more substantial effects, tipping individuals and employers into far-reaching decisions on employment, housing and investment.

Innovation nation?
While larger corporations will welcome the reduction of the main rate of corporation tax to 20% in 2015, persistent red tape around associated companies mean this merging of corporation tax rates is less of a simplification than it might appear.  But a 10% increase to the Above The Line R&D credit, will, it is hoped, add innovation to their aspirations.

Remuneration sensation
For smaller companies there was plenty of good news, such as a limited extension of reliefs for Seed EIS investment, and the removal of stamp duty on AIM transactions, but the main story was around employment.  A £2,000 ‘employment allowance’ will mean a third of UK companies will pay no employers’ NICs and will hopefully act as an incentive to take on staff. Whether this will offset the disincentive offered by pensions auto-enrolment remains to be seen.

Owner occupation
Individuals can however look forward to the personal allowance rising to £10,000,  childcare vouchers worth up to £1,200 a year, and Government support in the form of shared equity home loans and guarantees, as well as an extension of the right-to-buy,  if home ownership is their ambition.

Read more....

Join the discussion on


Budget 2013 Video

Budget 2013 video

You've heard what the Chancellor has to say, now see what Baker Tilly thinks

Tax Facts

Your easy-to-use comprehensive guide to all the facts and figures you need to know.

Download 2015/16 Tax Facts

Related links

Budget countdown
Tax Voice - March 2013
Post Budget events 2013
Tax services