Budget 2017

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• Capping the increase in business rates, as small business rates relief is withdrawn in 2017-18, to £600.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’.

• Full Budget details, including Whiting’s commentary

Blog entry by: Ian Piper.

Disclaimer - All information in this post was correct at time of writing.