Tax changes 'more important than enterprise initiatives'
Apr 03 2008
Changes and simplifications to the current tax system would do more to encourage new business in the UK than the government's enterprise strategy, according to an accountancy firm.
Andrew Jupp, Tenon's national head of tax, describes tax complications as the 'fundamental problem stopping entrepreneurship and innovation'.
Capital gains tax taper relief was introduced to encourage enterprise, but its disappearance has caused a ‘huge outcry’ among businesspeople, he says.
He adds that a period of potential recession is the most dangerous time to place restrictions on entrepreneurship.
Government policy is also discouraging innovation by 'taking away the incentive from people to make entrepreneurial decisions', he believes.
'I would have thought that now would be the worst time for businesses to be thinking about setting up from scratch and trying to raise finances, or expand,' he says.
The government has set up numerous initiatives to encourage business spirit in the UK, including a £12 million fund for female entrepreneurs, tailored support for the over 50s and more business education.