CGT concessions revisited as April approaches
Earlier on this year Chris posted on the blog heralding capital gains tax concessions for small business owners, due to begin in the new tax year. As April swiftly approaches, here are some details on the initiatives’ benefits to small business owners.
As well as providing tax relief, Alistair Darling has also promised to improve access to finance for small businesses.
The Small Firms Loan Guarantee is due to be increased by £60m this year and eligibility expanded. Alistair Darling has also added £30m to the available Enterprise Capital Funds.
The Treasury is considering giving 30 per cent of government contracts to small and medium-sized companies over the next five years, as well as dropping restrictions on factoring and invoice discounting in public sector contracts.
Tax relief on the Enterprise Investment Scheme and the Enterprise Management Incentive Scheme will increase by £100k and £20k respectively.
The Chancellor is also committed to encouraging more female entrepreneurs.
The Women’s Enterprise Task Force have welcomed a £12.5m capital fund for investment in women-led businesses which is to be included in the Budget this year. The plan also indicates a nationwide media campaign and regional pilots of business centres to support female entrepreneurs.
So overall, it looks as though 2008 will be a better year for small business owners with respect to their tax position and new allowances. This new focus on assisting small businesses will not, however, necessarily make taxation any easier. Benefits to small business owners will depend on how the Treasury’s promises are put into practice.
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Tags: small business owners, Tax