Budget 2004
Introduction
Personal
Income Tax
Tax Credits
National Insurance Contributions
Employees
Pensioners
Savings
Trusts
Capital Gains Tax
Inheritance
Tax
Stamp Duty / Stamp Duty Land
Tax
Corporation Tax
Business Tax
Value Added Tax
Other Measures
Tax
Tables
National Insurance
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Business
Tax
Capital Allowances
The 100% first year allowance for small business expenditure
on computers has not been extended, so it ends on 31 March 2004.
The general rate of FYA is increased for small businesses from
40% to 50% for one year from 1 April 2004 (companies) and 6
April 2004 (others).
Renovation of premises
A new relief will be introduced in 2005 (provided the European
Union does not raise objections) to give 100% tax relief for
expenditure on renovating business premises in the approximately
2,000 "enterprise areas" which currently qualify for
Stamp Duty Land Tax and other reliefs. The capital costs of
renovating a property will be treated as allowable expenses,
if the property has been vacant for a year when the project
begins.
Construction Industry Deduction Scheme (CIDS)
During 2003, the Revenue announced the intention to reform the
CIDS (following on from a major revision in 1999). This has
been deferred to April 2006, but the new rules will be included
in this year's Finance Act. In the meantime, the Revenue "will
increase compliance activity" to ensure that traders are
following the existing rules.
Lloyd's underwriters
For many years, there have been reliefs for traders who transfer
their business to a company - they can preserve the benefit
of unrelieved losses against income from the company, and can
defer capital gains arising on the transfer of the assets on
incorporation. These reliefs are now extended to a Lloyd's underwriter
who incorporates on or after 6 April 2004.
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