🌟 Death And Taxes: Why The 2024 Budget Was Not All Doom and Gloom 🌟

🌟 Death And Taxes: Why The 2024 Budget Was Not All Doom and Gloom 🌟

As Benjamin Franklin wrote, “nothing can be said to be certain, except death and taxes.”

The 2024 Autumn Budget may seem daunting at first glance, but it brings several positive changes for entrepreneurs and small businesses.

Overall, these comprehensive measures are designed to provide financial relief and encourage investment in new and growing businesses.

Employment Allowance Increase🚀 The Employment Allowance has been raised from £5,000 to £10,500, meaning many small businesses won’t have to pay any National Insurance contributions, significantly reducing their operational costs.

Business Rates Relief🏢 For retail, hospitality, and leisure businesses, a 40% relief on business rates will be available for the 2025-26 period, up to a maximum discount of £110,000. This relief aims to ease the financial burden on these sectors, allowing them to reinvest in their businesses.

Capital Gains Tax💼 While the rates for Capital Gains Tax have increased, the Business Asset Disposal Relief lifetime limit remains at £1 million. This provides some stability for entrepreneurs planning to sell their businesses, ensuring they can still benefit from tax relief on gains up to this limit.

Corporate Tax Roadmap📊 The government has outlined a Corporate Tax Roadmap, capping the headline rate of Corporation Tax at 25%. It also maintains the small profits rate and marginal relief at current levels, providing a clear and stable tax environment for businesses to plan their growth.

Energy Support Scheme💡 A new energy support scheme will provide grants of up to £4,000 to help small businesses manage rising energy costs. This is aimed at reducing the financial burden of energy expenses and supporting sustainability efforts, making it easier for businesses to thrive in a challenging economic climate.

Start-Up Relief for Entrepreneurs🌱 The relief under the Start-Up Relief for Entrepreneurs scheme has been increased from £700,000 to £980,000. This will provide more substantial support for new businesses, helping them to grow and innovate.

Capital Gains Tax Relief for Investors📈 There is an amendment to the Capital Gains Tax relief targeted at investors in innovative start-ups. The lifetime limit on gains to which the relief applies has been increased from £3 million to £10 million, encouraging more investment in new and innovative businesses.

Research and Development (R&D) Tax Credits🔬 The R&D tax credit scheme has been expanded, allowing more small and medium-sized enterprises (SMEs) to claim enhanced deductions for their R&D expenditures. This aims to foster innovation and technological advancement within the UK.

Disclaimer: The information provided is for general informational purposes only and does not constitute professional advice.

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