Osborne plans tax revamp to fuel growth

Chancellor to cut corporation tax and consider merger of NI and income tax

Opening the doors for private business to stimulate growth was the name of the game for today's Budget, with a range of tax breaks and legislative helping hands.

Taking top billing today was chancellor George Osborne's plans to merge income tax and national insurance. A consultation on the possibility will begin shortly.

"It is time to take the historic step to simplify our tax system and make it fit for the modern age," said Osborne.

The chancellor went on to reveal that, from next month, corporation tax will be cut by two per cent, rather than the planned one per cent cut. Further one-point cuts will follow in subsequent years, ultimately taking the rate to 23 per cent.

The government is also aiming to help start-ups by doubling the entrepreneur's relief to £10m. A moratorium is also to be introduced offering a three-year exemption from domestic tax changes to firms with fewer than 10 staff and "genuine start-ups".

Stay tuned to ChannelWeb and read Monday's CRN for much more news and reaction to the budget.