Budget summary 2013

George Osborne presented his Budget on Wednesday 20 March 2013.

In his opening statement he set the scene for some of the new measures announced, stating 'this is a Budget for people who aspire to work hard and get on'.

Towards the end of last year the Government issued the majority of the clauses, in draft, of Finance Bill 2013 together with updates on consultations. The publication of the draft Finance Bill clauses is now an established way in which tax policy is developed, communicated and legislated.

The Budget updates some of these previous announcements and also proposes further measures. Some of these changes apply from April 2013 and some take effect at a later date, so the timing needs to be carefully considered.

Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.

Main Budget tax proposals

  • Date set for increase in the personal allowance to £10,000.
  • New scheme for tax free childcare.
  • Further reduction in the main rate of corporation tax to 20% from 1 April 2015.
  • Employee-shareholder contracts will be exempt from income tax and NIC for the first £2,000 of shares received.
  • The introduction of an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 NIC liability from April 2014.
  • A capital gains tax re-investment relief for gains made in the tax year 2013/14 where the gain is invested in Seed Enterprise Investment Scheme shares.

Significant non-tax measures have been announced to tackle long-term problems in the housing market and are covered in the Other Matters section of this summary.

Previous announcements

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

  • personal allowance substantially increased for 2013/14
  • restrictions in the higher age related personal allowances and their availability
  • an increase in the Annual Investment Allowance limit from £25,000 to £250,000
  • introduction of a cash basis for reporting profit for the smaller unincorporated business.

Download the 2013 Budget Summary

Download the 2013/14 Tax Card

Our handy UK tax app gives you quick and easy access to key UK tax information. With the latest rates and dates derived from the 2013 Budget, you will have your own hub of tax knowledge while you are on the move.

To download our iPhone app, type ‘UK tax hub’ into your App Store.

Latest news

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Our summary of the 2011 Budget

George Osborne presented his second Budget on Wednesday 23 March 2011.  In his statement he said that the “Budget is about reforming the nation’s economy, so that we have enduring growth and jobs in the future”.  Our summary of the Budget focuses on the issues likely to affect you, your family and your business.

Latest publications

2013 Autumn Statement

George Osborne delivered his 2013 Autumn Statement on Thursday 5 December 2013.

In his statement he announced that economic growth forecasts for this year have more than doubled from 0.6% to 1.

Budget summary 2013

Download George Osborne's Budget presented on Wednesday 20 March 2013.

Tax card 2013/14

A summary of all the tax rates for 2013/2014 as set in the Chancellor's Budget on 20 March 2013.

Budget summary 2012

Budget cover

Our summary of George Osborne's 2012 Budget announcement is now available to download.

Tax card 2012/13

Tax card cover

Download our handy Tax Card for a run down of the key rates for 2012/13.

2011 Autumn Statement

Autumn Statement 2011

Chancellor George Osborne delivered his 2011 Autumn Statement to Parliament on Tuesday 29 November 2011. In his statement he explained what action the Government will take to safeguard the UK from global instability and the euro area crisis and build a stronger, more balanced economy for the future.

Third sector update: Charities and the 2011 Budget

The March 2011 Budget included a number of items of interest to charities but none of them constituted the major boost that the sector was looking for. This update document outlines the measures announced.

Budget Summary 2011

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Budget Summary 2010

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Pre-budget Report 2006

Delivering his tenth, and what is widely anticipated to be his last, Pre-Budget Report to the House of Commons, Chancellor Gordon Brown gave an upbeat account of the UK economy, announcing that Britain will meet all of its fiscal rules in this economic cycle and the next.

Budget Summary 2006

This Report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the announcements most likely to affect you or your business.