Cut in business rates welcomed
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Chancellor Alistair Darling’s decision to cut business rates and double the annual investment allowance for small firms has been welcomed by industry experts.
In the Budget, Darling ann-ounced that business rates will be reduced for one year starting in October and the annual business investment allowance will be increased from £50,000 to £100,000. Darling said he would also increase the relief on CGT for entrepreneurs from £1m to £2m.
Threesixty partner David Ingram says today’s changes are “clearly very good news for anyone seeking to build value into their business for an eventual disposal”.
Sesame Bankhall Group chief operating officer Steve Young says: “A vast majority of our profession are small businesses, so cutting business rates helps a large number of IFAs. The new investment allowances will help those IFAs who want to invest in their businesses as well.”
But Aifa director general Chris Cummings says cuts to National Insurance and corporation tax would have been more use. He says: “Anything that supports businesses in this climate is welcome although they could go a lot further. We have still got the National Insurance rises and that is very disappointing. I would have also liked them to cut corporation tax if we are to encourage more entrepreneurship.”
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