A FEW rabbits emerged from the Chancellor's hat on Budget day that will be of interest and small businesses.

While many commentators had expected the Chancellor to increase Capital Gains Tax (CGT) rates and to narrow the scope of Entrepreneurs' Relief, he actually did the reverse.

Disposals on or after April 6 2016 will attract a CGT rate of 20 per cent (as opposed to the current 28 per cent) insofar as they fall into the higher rate band and 10 per cent (as against the current 18 per cent) insofar as they fall into the basic rate band.

The existing rates will, however, continue to apply to residential property (but the disposal of a person's principal private residence will still be exempt): this seems to reinforce the negative message the Government has been sending to landlords through the restriction of loan interest on buy-to-let properties and the increased rate of Stamp Duty Tax on second properties.

If you are about to make a disposal that will atract CGT you should consider which side of the tax year end - which is only a couple of weeks away - it should fall.

Entrepreneurs' Relief will be extended to cover shares purchased in unquoted trading companies on or after March 17 2016 and held for at least three years.

The rules for associated disposals (personal assets used by an individual's business and disposed of as part of their withdrawal from the business) will also change.

Companies whose directors have loan accounts will face a higher tax charge.

Currently, tax is levied at 25 per cent of the overdrawn amount but from April 6 2016 this will increase to 32.5 per cent.

The tax is repayable to the company on the normal corporation tax payment date following the year in which the loan is repaid by the director.

New rules governing the way in which company losses can be used will take effect from April 1 2017 and these will broadly favour smaller companies and groups.

The corporation tax rate will fall to 19 per cent from April 1 2017 and to 17 per cent frmo April 1 2020.

The Chancellor again flagged his intention to look at salary sacrifice arrangements and announced that class 2 national insurance will disappear from April 2018.

Add to the mix the changes to the dividend rules announced last year and there is a great deal for businesses, investors and their advisers to think about.

Paul Aplin OBE is is a tax partner with AC Mole & Sons and chairman of the Technical Committee of the Institute of Chartered Accountants in England & Wales Tax Faculty; you can follow him on Twitter @PaulAplinOnTax. He and fellow tax partner, Amanda Gunter, can be contacted on 01823 624450.