IFAs get tax cut but capital allowances slashed
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The reduction in the rate of corporation tax to 24 per cent by 2014 has been welcomed as a boost for IFA firms.
The tax will fall from its current level of 28 per cent by 1 per cent every year for the next four years, with the first cut next year.
Aifa director of policy Andrew Strange says: “The reduction in corporation tax is good news for IFA businesses. The further reductions over the next four years will also provide a boost as the advisory profession seeks to grow.”
But the cut in the annual investment allowance from £100,000 to £25,000 from April 2012 has been criticised.
Technology & Technical director Kim North says: “This is one of the biggest reductions we have seen in this Budget. This will affect all businesses in the UK, from the largest product provider to the smallest IFA, as anyone who buys assets such as office equipment could be affected.”
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