Budget 2013 April 18, 2013 12:00 am The Chancellor delivered his 4th Budget on 20th March. Rather like earlier ones, the economic news was bad, with most forecasts revised for the worse compared with previous estimates. The UK economy struggles to grow. The independent Office of Budget Responsibility (OBR) now has GDP forecast to increase by only 0.6% in 2013. At the time of the Chancellor’s Autumn Statement only four months ago the figure had been 1.2% (and 2% this time last year). The forecast for 2014 has been cut to 1.8% from 2% in the autumn. Despite all the talk of austerity the annual budget deficit is not going to be reduced greatly either In 2012/13 or 2013/14. Therefore the national debt is forecast to continue to rise until 2017/18. In terms of specific policy measures that might be of interest to farming and other rural businesses; Corporation Tax cut to 20% from April 2015 – this will align the main and small companies rates A £2,000 annual Employment Allowance which all businesses can deduct from their employers National Insurance contributions to commence from April 2014 The personal Allowance for Income Tax will increase to £10,000 for the 2014/15 tax year (as previously the threshold for the higher rate of tax will be decreased so that higher rate taxpayers get no net benefit) The Inheritance Rate nil-rate threshold will be frozen at the current £325,000 for three more years until 2017/18. There are some (complicated) rule changes on preventing the reduction in the value of an estate for IHT by taking on debt. The cancellation of a planned fuel duty rise for September A simplification of the rules on Stamp Duty Land Tax as it relates to leases is planned.
