In many ways, last month's Budget was as expected: a mixture of good and bad news. There was bad news for public sector workers but the news for businesses and for many individuals was actually better than had been feared. And there were, as there generally are, some announcements that give rise to opportunities for tax planning.

Companies will have welcomed the commitment to progressively lower corporation tax. The main rate will fall from the current 28% by 1% each year until it reaches 24%. The lower rate of corporation tax will fall from 21% to 20%.

There was a widespread expectation that the rates of capital allowances - the tax relief given to businesses investing in plant and equipment, vans and fixtures and fittings - would be less generous going forward. The rates of relief are to be restricted, but not until April 2012. Businesses still therefore have an opportunity to benefit from capital allowances at the current rates. The annual investment allowance, which gives businesses 100% relief on the first £100,000 of such expenditure, will drop to cover only the first £25,000 from April 2012 and this again gives businesses a reasonable period in which to make sure they take full advantage.

The increase in the capital gains tax rate from 18% to 28% was not unexpected and many had feared a bigger increase. The fact that the rate changed overnight was a shock, however. In addition to the change of rate, the Chancellor announced a significant increase in the level of entrepreneurs' relief, which restricts the capital gains tax rate to 10% on the first £5 million of gains on certain business related gains – previously the limit was £2 million.

Entrepreneurs' relief applies to gains on the disposal of the whole or part of a business or of assets that were used in a business that ceased within the previous three years.  It also applies to disposals of shares in unquoted trading companies where the person making the disposal is a director, officer or employee of the company and has held at least 5% of the company's shares for at least twelve months prior to disposal. There are significant tax planning opportunities and equally significant traps for the unwary here.

In these difficult economic times, keeping your tax bill under control is vital. The Budget supplied some new opportunities for businesses to do so.

Paul Aplin OBE is a tax partner with A C Mole & Sons and chairman of the Technical Committee of the Institute of Chartered Accountants in England & Wales Tax Faculty. He can be contacted on 01823 624450, email paulaplin@acmole.co.uk. Bridgwater based tax partner Paul Kingdom can be contacted on 01278 446088, email paulkingdom@acmole.co.uk.