The Autumn Statement was presented this afternoon. We’ve had a look at all the announcements and what this means for tech startups.
George Osborne presented the 2014 Autumn Statement this afternoon from the House of Commons. In his update to MP’s, he’s told us that the economy is growing faster than previously reported, with business investment having risen by 27%. He went on to highlight borrowing forecasts, and new polices. We’ve pulled some key points out from the speech which are most relevant to tech startups. They’re not big, but they’re pretty useful!
R&D tax credits up to 230% for SMEs
Good news again! There has been an uplift in claimable expenditure to increase from 225% to 230% for small and medium businesses in Research and Development tax credits. Further to this, claims made under the large scheme, which sometimes happens when startups have also claimed under a scheme such as the TSB grant can claim the new 11% credit, which was previously not possible.
Gains which are eligible for Entrepreneurs Relief can now be deferred into EIS
When an investor or founder sells or qualifies for Entrepreneur Relief on the gain, this can now be ‘rolled’ into an EIS investment. Income Tax Relief can be taken upfront, and you can still enjoy Entrepreneur Relief on eventual sale. Great news for entrepreneurs reinvesting after exiting!
Extension of Employers NIC exemption for Apprentices under the age of 25
The announcement is part of Governmental plans to lower unemployment by making it cheaper to hire young people. Good Work George 🙂
Other Good News…
There will be a new Diverted Profits Tax at 25% on multinationals who divert profits from the UK
In a move to target ‘certain technology giants’ who take profits made in the UK and declare them in tax havens overseas, a 25% Diverted Profits Tax will be applicable in attempts to discourage the use of complicated avoidance schemes like the ‘Double Irish’
If you have any further questions regarding the new startup related policies that have been laid out feel free to contact us on firstname.lastname@example.org