This is a quick precis of the budget and what will effect business:-

Main Budget Proposals

The Entrepreneurs’ Relief limit will be doubled to £2 million for disposals on or after 6 April 2010. Gains qualifying for the relief are charged at an effective capital gains tax rate of 10%

Most businesses are able to  claim an Annual Investment Allowance on the first £50,000 spent on plant and machinery. This provides immediate 100% tax relief on qualifying expenditure. The allowance is to increase to £100000 from April 2010.

Close companies broadly family and owner managed companies will no longer be able to obtain corporation tax relief on the write off of loans to a participator (generally a shareholder)

Inheritance tax nil rate band is currently £325000 and this band will be frozen until 2014/15

SDLT relief is introduced for first time home buyers but will be paid for by increasing SDLT on homes above £1million

Previous announcements

Some of the changes detailed int his summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:

the small companies rate is currently 21% and an increase to 22% is planned to take effect from 1 April 2011.

introduction of a 50% top rate of tax for those with income over £150000 and the phased reduction of personal allowances fro those with incomes over £100,000

removal of higher rate relief for pension contributions from 6 April 2011 for those with high income.

24 March

BVRLA chief executive John Lewis had this to say about Chancellor Alistair Darling’s 2010 Budget:

“This was more of a pre-election statement than a Budget and there was precious little for road users to get encouraged about.”

“By doing nothing to reduce grey-fleet-encouraging AMAPs rates or the 3% diesel surcharge, the government has yet again failed to remedy the inequalities in its emissions-reduction strategy. However, we do applaud the fact that the Treasury has finally made existing tax incentives technology neutral.”

On specific Budget measures:

Fuel Duty:

“Staggering the 3p increase in fuel duty will give road users some respite. In reality, they are still applying the thumbscrews, just a little more slowly.”

Ultra-low carbon car tax:

“The Chancellor’s decision to halve company car tax for ultra-low carbon cars is a nice gesture that probably should have been made in the Pre-Budget Report. This is definitely an incentive for the future – company car drivers will struggle to find a suitable ultra-low carbon car at the moment.”

Reduced Pollution Certificates:

“It is great to offer an annual £500 VED rebate for operators buying Euro VI compliant vehicles, but where are people supposed to buy them? This is another green incentive that is great in theory but will make little or no difference for businesses any time soon.”

Road maintenance:

“According to the Annual Local Authority Road Maintenance Survey, local authorities already have an £800m shortfall in road maintenance budgets so handing them an extra £100m is not going to go far.”

Funding:

“The Chancellor highlighted the fact that interest rates remain at ultra-low levels, but he didn’t admit that lending rates have soared.

“We hope that the new Credit Adjudication Service will have a remit to help small businesses negotiate fair borrowing rates from their banks.”

“The vehicle rental and leasing industry has been exploring non-bank finance opportunities for some time and we hope that the government’s promise to help businesses find more diverse sources of funding will help.”