| The various measures
introduced by the Government in the last few months and by
Gordon Brown in the March 2000 Budget seem to have been met
largely with indifference by small and medium-sized
businesses. Although the Chancellor claims that his
policies will make the UK "the place for companies to
start to invest, to grow and to expand", most company
owners are considerably less enthusiastic. However,
there is no doubt that some of the new measures could benefit
your business. |
| |
|
Reducing
the CGT liability
|
| The Chancellor announced
major changes for taxing chargeable gains on business assets,
including a shortening of the minimum holding period for the
maximum 'taper relief' from ten to four years, and a widening
of the actual definition of 'business assets'. Sole
traders, business partners, company shareholders and company
directors could all benefit from these changes. Contact
us for further explanation and to find out how the measures
could effect your tax planning. |
|
|
| Boost
for e-commerce |
| The
Government remains eager to appear supportive of
e-business. As well as setting aside a £60 million
package designed to help firms make greater use of the
internet, it has introduced a temporary 100% first year
allowance for small companies buying information and
communications technology equipment. There are also
discounts available for the electronic filing of tax returns. |
| |
| Extending
capital allowances |
| The
40% first year capital allowance for investment in plant and
machinery by small and medium-sized enterprises has been made
permanent. The allowance does not apply to expenditure
on cars, assets for leasing or 'long-life assets', but we can
help you identify how the improved reliefs can benefit you. |
|
|
Extending
share ownership |
| The
All-Employee Share Ownership Plan, which the Government claims
will help firms create a more productive and enterprising
business environment, was introduced from April 2000. Also introduced
was the Enterprise Management Incentive Scheme, designed to
help small |
|
|
| businesses attract and retain key employees by
offering tax-advantaged share options. |
| |
| More
funding for enterprises |
| With an economy
that continues to expand, additional capital of up to £1
billion is being made available by the Small Business Service
and the Regional Development Agencies. This capital is
intended to allow easier access to venture capital for small,
growing enterprises. |
| |
|
Prospects
for inflation
|
| The Chancellor
has always insisted that he takes a 'prudent' approach to
managing the economy, ever determined to avoid a return to the
'boom and bust' years. Inflation is expected to remain
low this year, while official forecasts suggest a 'robust
growth' of 2.75% to 3.25% for 2000. |
| |
| Some or
all of the changes and new measures could affect your tax
planning. Remember that we are always available to
provide information and advice. |
|
