Another key aim of the coalition has been to make the UK one of the most competitive tax regimes in the G20 through lowering the main rate of tax.

This Budget achieved that aim with the main rate of corporation tax reduced to 20% from 1 April 2015. From this date, the main and small companies rates will be aligned which removes the extra complications around marginal rates and associated companies (where a company’s chargeable profits fall between £300,000 and £1.5m in the year). A welcome piece of news for accountants when preparing the corporation tax computations!

Chancellor Osborne was keen to point out that this decrease in corporation tax will be paid for by an increase in the bank levy (which will increase to 0.142%)..