Budget 2013

How is your business affected?

The Chancellor George Osborne made his Budget 2013 statement on Wednesday 20 March 2013. See below a summary of key points for Northern Ireland businesses.

The economy

Over the next few year growth is forecast at:

  • 0.6 per cent of GDP in 2013.
  • 1.8 per cent in 2014.
  • 2.3 per cent in 2015.
  • 2.7 per cent in 2016.

Government borrowing over the next few years is forecast at:

  • £144 billion in 2013/14.
  • £108 billion in 2014/15.
  • £97 billion in 2015/16.
  • 87 billion in 2016/17.

Help for businesses

  • Corporation tax will be cut by 1 per cent to 20 per cent from April 2015 – Corporation Tax rates.
  • Introduction of the Employment Allowance that will take the first £2,000 off the employer National Insurance bill of every company – this is due to become available from April 2014.
  • Increase by fivefold the value of government procurement budgets spent through the Small Business Research Initiative – growth vouchers will be made available to small firms seeking advice on how to expand – the Small Business Research Initiative.
  • New tax relief to encourage private investment in social enterprises.
  • Capital Gains Tax relief for sales of businesses to employees – how to achieve an employee buyout.
  • Tax avoidance and evasion measures to be introduced – agreements with the Channel Islands and; the promoters of tax avoidance schemes to be named and shamed.
  • Companies that look after their employees and help them to return to work after periods of sickness will get help through the tax system.
  • Stamp duty abolished on shares traded on growth markets such as AIM – what is AIM?

Personal tax


  • Fuel duty – September’s 3 pence fuel duty increase has been cancelled – rates of Fuel Duty.
  • Beer duty – 1 pence to be cut from a pint of beer to take effect this Sunday night – Beer Duty.
  • Alcohol duty – all other alcohol duties for wine, cider and spirits will remain as previously announced – alcohol duties.
  • Cigarette duty – unchanged

Energy and the environment

  • New tax incentives for the manufacture of ultra-low emission vehicles.
  • New tax regime to promote investment in low cost energy like shale gas.


  • In an attempt to help the construction industry and homebuyers the government has announced the Help to Buy scheme that has two key components:
    • government to offer an equity loan worth up to 20 per cent of the value of a new build home to anyone looking to move up the housing ladder -the loan is interest free for the first five years and is repaid when the home is sold.
    • introduction of a Mortgage Guarantee that will be available from the start of 2014 and will run for three years – this is aimed to help those that can’t afford a large deposit when purchasing a house.


  • Single flat-rate pension of £144 a week brought forward a year to 2016 – pay and pensions.


  • New tax-free childcare vouchers for working families – 20 per cent off the first £6,000 of your childcare costs for each child.

You can access full details of the Budget 2013 on the HM Treasury website.

You can also read full details of the Buget 2013 on the HMRC website.

Source: nibusinessinfo.co.uk