The UK budget announcements include measures in support of business. The research and development tax credit available to small businesses is to be increased from 11 percent to 14 percent. The Seed Enterprise Investment Scheme that gives tax relief to investors in startup companies is to be made a permanent measure. Social enterprises are to be helped by the provision of Social Investment Tax Relief at a rate of 30 percent. The Annual Investment Allowance that provides generous tax relief to businesses in respect of asset purchases is to be extended to the end of 2015 and is to be increased from GBP 250,000 to GBP 500,000. The budget also provided for GBP 7 billion in measures to help reduce the burden of energy costs for UK business. The extension of the film tax credit has been approved by the European Commission and there are plans to grant a similar tax credit to qualifying theater productions and regional touring.
The planned rise in fuel duty from September 2014 has been postponed. Excise duty has been cut for beer and frozen for spirits and cider, while bingo duty is to be reduced by 10 percent. Tobacco duty is however to continue increasing faster than the inflation rate. The government is to consider revising the horse race betting levy.
