Osborne goes back to the future says EY
19 March 2014
Chris Sanger, EY's head of tax policy comments on the Chancellor’s Budget:
“Having paid some of the price for reducing the corporate tax rate, manufacturers and heavy industry were given a welcome fillip today as George Osborne returned to a firm favourite of Chancellors past. Extending and doubling the Annual Investment Allowance to £500,000 provides immediate tax relief for investment. Costing over £1.5 billion in the first five years, this cash bonus should provide just the incentive business needs.
“In a further copycat measure, the Chancellor extended the Enterprise Zones reliefs on Business Rates and Enhanced Capital Allowances. More fundamentally, the Chancellor’s limits on the carbon price floor will deliver an overall tax package of almost £3.5 billion.”
“Osborne talked of the need to ‘out-compete, out-smart and out-do’ our competition. He will now be looking for manufacturers to out-perform.”
For more information on the 2014 Budget, visit the EY 2014 Budget page.