March Budget 2014 – Key points for Digital, tech & creative companies
- Increase in payable R&D tax credit for loss-making SMEs from 11% to 14.5% for expenditure incurred on or after 1 April 2014. This means that approximately 33% of qualifying spend is eligible for a tax credit rather than the current 24.75%
- Seed EIS (SEIS) turned into a permanent tax relief given its success along with the 50% CGT exemption for gains reinvested
- Doubling of the Annual Investment Allowance from £250,000 to £500,000 for expenditure incurred on or after 1 April 2014 for companies until 31 December 2015. This will allow 99% of companies to get 100% write off of their investment into capital expenditure in the year of expenditure (excludes buildings and most cars).
- Personal allowance increase to £10,500 from April 2015 (£10,000 from 6 April 2014) and an increase in the basic rate tax band to allow higher rate tax payers to receive some of the benefit.