What’s in it for Technology Companies?
Philip Hammond’s first Spring Budget announced a handful of steady-as-she-goes measures. The new announcements that will catch the eye of technology companies include:
- From 6-Apr-18, the tax free allowance for personal dividend income will reduce from £5k to £2k pa,
- For tax advantaged share schemes:
- clarifying the EIS and SEIS rules for share conversion rights,
- providing additional flexibility for follow-on investments made by VCT,
- introducing a power to enable VCT regulations to be made in relation to certain share for share exchanges, to provide greater certainty,For tax advantaged share schemes:
- Specific new provisions to the revised Patent Box rules, covering the case where Research and Development (R&D) is undertaken collaboratively by 2 or more companies under a cost sharing arrangement.
- Administrative changes to Research and Development (R&D) tax credits, following a review of the tax environment for R&D. This will increase the certainty and simplicity around claims,
- Tackling the workforce skills shortage by introducing new:
- T Level qualifications (on a parity with A Levels),
- Further education maintenance loans,
- Trial projects that encourage lifelong up-skilling training
- Capping the increase in business rates, as small business rates relief is withdrawn in 2017-18, to £600.
Overall, the tech industry will probably greet these announcements in a subdued manner. It is immediately clear that the over-riding strategy remains to balance the public finances (target date now extended to 2025), so there are no big ‘give-aways’.
Blog entry by: Ian Piper.