George Osborne, the Chancellor of the Exchequer, made his first “scheduled” Budget statement last month. Below are some of the main points raised:

• The main rate of corporation tax has been reduced to 26% in 2011, an additional 1% decrease on what had been expected. The rate will be reduced by 1% per annum until it reaches 23% in 2014.
• Small Companies Rate has been reduced to 20% as expected.
• R&D credits that can be claimed as an allowable deduction have been increased to 200% with effect from 2011/12, increasing to 225% in 2012/13.
• Business Premises Renovation Allowance scheme, which was scheduled to end in April 2012, has been extended for a further 5 years.
• Oil & Gas companies were hit with an increase in the supplementary charge from 20% up to 32%.
• The personal allowance for 2011/12 was confirmed as £7,475. The basic rate band is £35,000.
• The personal allowance will increase to £8,105 in 2012/13 as the Government aims toward its commitment to a £10,000 level. The basic rate band will be correspondingly reduced to £34,370.
• Mr Osborne indicated that he viewed the 50% additional rate of income tax as a temporary measure, although there was no scope to remove this rate at the moment.
• The income tax relief available on EIS subscriptions has been increased to 30% from 2011/12.
• The Government will aim to introduce a statutory definition of Residence in time for the 2012/13 tax year.
• The charge for Non-Domiciles who wish to remain outside the full scope of UK income tax will increase in 2012/13 to £50,000 where they have been resident in the UK for more than 12 years.
• As expected, Furnished Holiday Lettings are being retained, and expanded to include lets in the EEA. However, losses can no longer be offset against other income, and can only be used against profits from the same business.
• It was announced that the Government would look into a possible alignment of Income Tax and National Insurance Contributions.
• No significant changes were made to the existing National Insurance Contribution rates; Contributions were already set to increase by 1% on 6 April 2011.
• The Capital Gains Tax annual exemption for 2011/12 was set at £10,600.
• The individual lifetime limit for gains qualifying for Entrepreneur’s Relief was doubled to £10m.
• The Inheritance Tax rate of 40% will, from 6 April 2012, be reduced to 36% where at least 10% of the Estate is left to charity.
• The VAT registration and deregistration limits have been increased by £3,000 to £73,000 and £71,000 respectively.

Mr Osborne spoke once again for 56 minutes, and settled on a plain purple tie.