The corporation tax rate will be reduced to 23% in April 2013.

The rate will be reduced to 21% for the financial year commencing 1st April 2014 and 20% for the financial year commencing 1st April 2015.

A simpler income tax scheme will be introduced for small unincorporated businesses from April 2013. Businesses with receipts of up to £77,000 will be able to calculate their profits on a cash basis. They will be able to also use flat rates to calculate certain business expenses.