Business tax
The apprenticeship levy
The apprenticeship levy is due to begin in April 2017, and the rate has been set at 0.5% of an employer's payroll. Employers will receive an allowance of £15,000 to set against their levy payment. As a result, only employers with a payroll of more than £3m will have to pay the levy.
Small business rate relief (SBRR)
The doubling of SBRR will be extended for a further year from 1 April 2016.
Extending averaging for farmers
The averaging period for self-employed farmers will be extended from two years to five years with effect from April 2016, with farmers having the option of either averaging period. This follows the consultation announced in the March Budget 2015.
Business investment relief
The government will consult on how to change the business investment relief rules to encourage greater use of the relief to increase investment in UK businesses.
Venture capital schemes: eligible investments
With effect from 30 November 2015, the provision of reserve energy generating capacity and the generation of renewable energy benefiting from other government support by community energy organisations will no longer be qualifying activities. In addition, these activities will not be eligible for social investment tax relief (SITR) when SITR is enlarged.
All remaining energy generation activities will be excluded from the schemes from 6 April 2016, as well as from the enlarged SITR. There will also be increased flexibility for replacement capital within EIS and VCT, subject to state aid approval.
This was legislated for in the Finance (No. 2) Act 2015.
Employee share schemes: simplification of the rules
A number of technical changes will be made to the tax rules for employee share schemes. These changes will provide more consistency and put beyond doubt the tax treatment for internationally mobile employees of certain employment-related securities (ERS) and ERS options. Any charge to tax will arise under the rules that deal with ERS options, rather than the rules for earnings.