Investment tax allowance doubled in Osborne’s fifth budget

20poundnotesThe Chancellor George Osborne has doubled the investment allowance in corporation tax to £500,000 in his fifth budget.

He said the move would ensure than 99% of companies paid no tax on money used for capital spending. This will cost the treasury £2bn.

Osborne told the House of Commons that The Office for Budget Responsibility, the official fiscal watchdog, had upgraded its short-term growth forecasts. It has forecast growth of 2.7% this year, from 2.4%in the Autumn Statement, 2.3% in 2015, up from 2.2%, and left the forecast for 2016 unchanged at 2.6%.

However, it has reduced its growth forecasts for 2017 and 2018 because it says the economy will have reached full capacity.

He also announced stamp duty of 15% would be charged for those who buy property worth £500,000 or more through a company. The previous level was £2m.