George Osbourne’s 2014 Budget has picked up where its predecessor left off for business owners, many of whom should continue to benefit from the government’s commitment to ensuring Britain remains one of the world’s most hospitable business environments.
The 2013 Budget saw the Chancellor commit to a reduction in the main rate of corporation tax for non-ring fenced profits to 21 per cent as of 1 April 2014, and 20 per cent as of 1 April 2015. Additionally, the 2013 Budget sought to provide benefit to business owners via the introduction of a £2,000 National Insurance employment allowance.
The Chancellor has sought to build upon this with the announcement in the 2014 Budget that no National Insurance payments will be required from businesses for those employees under the age of 21.
Investment allowances for businesses have also doubled to £500,000 and have been extended to the end of 2015 at a cost of £2bn to the government - further evidence of the strong commitment to building a business-focused economy.
Britain, and in particular London, is widely considered as the business capital of Europe; with the government continuing with its pro-business commitments, more and more global corporations are positioning their European headquarters in this country, or seeking to gain a foothold in the British market.
As a business owner looking to sell or gain investment for growth, now is the perfect time as demand from international acquirers is at an all-time high.
With resurgent UK-based corporations and financial acquirers also demonstrating high demand for acquisitions following years of inactivity, levels of competition for strong acquisition opportunities continue to increase overall deal values and multiples being paid.