Budget 2004 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Pensioners Savings Trusts Capital Gains Tax Inheritance Tax Stamp Duty / Stamp Duty Land Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Business Tax Capital Allowances The 100% first year allowance for small business expenditure on computers has not been extended, so it ends on 31 March 2004. The general rate of FYA is increased for small businesses from 40% to 50% for one year from 1 April 2004 (companies) and 6 April 2004 (others). Renovation of premises A new relief will be introduced in 2005 (provided the European Union does not raise objections) to give 100% tax relief for expenditure on renovating business premises in the approximately 2,000 "enterprise areas" which currently qualify for Stamp Duty Land Tax and other reliefs. The capital costs of renovating a property will be treated as allowable expenses, if the property has been vacant for a year when the project begins. Construction Industry Deduction Scheme (CIDS) During 2003, the Revenue announced the intention to reform the CIDS (following on from a major revision in 1999). This has been deferred to April 2006, but the new rules will be included in this year's Finance Act. In the meantime, the Revenue "will increase compliance activity" to ensure that traders are following the existing rules. Lloyd's underwriters For many years, there have been reliefs for traders who transfer their business to a company - they can preserve the benefit of unrelieved losses against income from the company, and can defer capital gains arising on the transfer of the assets on incorporation. These reliefs are now extended to a Lloyd's underwriter who incorporates on or after 6 April 2004.