TIGA has a number of successes in Budget 2012, such as:
2.47 Enterprise Management Incentive (EMI) scheme – The Government will more than double the individual grant limit from £120,000 to £250,000, to commence at the earliest opportunity following State aid approval and provide enhanced guidance to support start-ups. Entrepreneurs’ Relief will be extended to gains on shares acquired through EMI, and the Government will consult on extending the scheme to academics employed by a qualifying company, from April 2013 subject to State aid approval. (Finance Bill 2013) (14)
2.96 Corporation tax: main rate – The Government will reduce the main rate of corporation tax to 24 per cent from April 2012, rather than 25 per cent as had been announced at Budget 2011. The rate will then be reduced by a further 1 per cent in each of the following two years, and as a result will be 22 per cent from April 2014. (Finance Bill 2012 and Finance Bill 2013) (7) (m) (aq)
2.98 Patent Box – As announced in the Corporate Tax Road Map in November 2010, the Government will introduce a reduced 10 per cent rate of corporation tax for profits attributed to patents and certain other similar types of intellectual property. The regime will be phased in over five years from 1 April 2013. (Finance Bill 2012) (bg)
2.99 Research and Development (R&D) tax credits – As announced in Budget 2011, with effect from 1 April 2012 the rate of R&D tax credits for small and medium enterprises (SMEs) will increase from 200 per cent to 225 per cent; the limit of SME payable credit, based on their PAYE/NICs liability, will be removed; and the £10,000 minimum expenditure requirement for large companies and SMEs will be abolished. The Vaccine Research Relief for SMEs will also be removed. (Finance Bill 2012)
2.100 R&D tax credit: ‘Above the Line’ (ATL) – From April 2013, the Government will introduce an ATL credit for R&D, with a minimum rate of 9.1 per cent before tax. Loss-making companies will be able to claim a payable credit. The Government will consult on the detailed design of the credit shortly after Budget. Final rates, including for the payable credit, will be decided following consultation. (Finance Bill 2013) (12)
2.101 Corporation tax reliefs for the creative sector – Following consultation on the design, the Government will introduce corporation tax reliefs for the video games, animation and high-end television industries from April 2013, subject to State aid approval. (Finance Bill 2013) (13)