A Budget for business?

The highlights at a glance

To help companies with cashflow problems, the Chancellor extended the provision that allows loss-making companies to reclaim taxes on profits made in the last three years until November 2010 as well as doubling the main capital allowance rate to 40 per cent.

The following business announcements were made by the Chancellor;

Support for companies’ cashflow, with a top-up trade credit insurance scheme to match private sector trade credit insurance provision.

Businesses’ main capital allowance rate doubled to encourage firms to bring forward investment. New investment to 40 per cent for one year, with effect from April 2009, to allow a higher proportion of private investment to be offset in that year against taxable profits

New £750m investment fund to provide financial support to emerging technologies and regionally important sectors in advances businesses.

Enhanced tax relief to support investment of £50bn this year, including £10bn to support the communications sector and extend the broadband network.

Incentives to encourage smaller North Sea oil fields to be brought into production.

Implementation of a package of reforms to the taxation of foreign profits, including the introduction of an exemption for foreign dividends, supported by a limited restriction to the interest deduction rules.