Budget 2024: Impact on Entrepreneurs and Businesses

1. Angel Investors' Boost: Reduced Capital Gains Tax

๐Ÿ“ˆ Reduced capital gains tax for disposals by "Angel Investors" meeting criteria.ย  ๐Ÿ’ฐ Relief applicable up to twice the initial investment value.ย  โณ Investment must be held for three years for it to be a "Qualifying Investment."

2. Retirement Relief Expansion

๐Ÿฆ Retirement relief from capital gains tax expanded.ย  ๐Ÿ‘ด Age limit increased from 66 to 70 years, effective from 2025.ย  ๐Ÿ’ผ No monetary limit for disposals before January 1, 2014, for individuals over 55.

3. Revised Entrepreneur Relief Under Review

๐Ÿ” Ongoing review of Revised Entrepreneur Relief.ย  ๐Ÿ’น Provides reduced capital gains tax for share disposals meeting criteria.

4. R&D Tax Credit Enhancements

๐Ÿ”ฌ Research and Development tax credit increased from 25% to 30% of qualifying expenditure.ย  ๐Ÿ’ธ First-year tax repayable increased from โ‚ฌ25,000 to โ‚ฌ50,000.

5. Enhanced Key Employee Engagement Programme (KEEP)

๐Ÿค KEEP program enhanced with EU State Aid approval.ย  ๐Ÿ’ผ Lifetime company threshold raised from โ‚ฌ3m to โ‚ฌ6m.

6. VAT Threshold Adjustment

๐Ÿ“Š VAT registration threshold increased to โ‚ฌ40,000 for service businesses.ย  ๐Ÿ›๏ธ For goods businesses, threshold raised to โ‚ฌ80,000.ย  ๐Ÿ’ผ Easing compliance for smaller enterprises.