WITH the economy in the doldrums, the Chancellor had his hands tied when it comes to tax windfalls, says tax expert Simon Rhodes.

Simon Court, pictured, head of corporate tax at Chandler’s Ford law firm Blake Lapthorn, said: “George Osborne admitted that the budget is ‘fiscally neutral’ so that any tax cuts had to be paid for.”

But he said there was some good news.

“The personal allowance is to be raised to £10,000, working parents will be able to recoup childcare costs up to £1,200 per child, and, in an attempt to help people get on the property ladder, interest-free loans and guaranteed mortgages will be available to home buyers.

“The tax burden on businesses will be eased by a reduction in corporation tax to 20 per cent, and the first £2,000 of their employer’s National Insurance bill being taken off.

“It will be welcomed by businesses and it does mean the UK will have one of the lowest rates of corporation tax in the developed world.”