Darling’s PBR ‘bad news for small businesses’
Oct 10 2007
The Federation of Small Businesses (FSB) has criticised Alistair Darling’s pre-Budget report for adding to the tax burden of small businesses.
Plans to introduce supplementary business rates and changes to capital gains tax will hit many of the UK’s 4.5 million small businesses directly. This comes as a big disappointment to small businesses still reeling from increases in corporation tax announced in the last Budget.
John Walker, FSB policy chairman, says: ‘Alistair Darling’s first pre-Budget report was a disappointing one. The UK’s small business community, which contributes over half of the country’s GDP, will not be helped by increased business rates and a less generous capital gains scheme.
‘There were some welcome announcements about simplifying the tax system, which are long overdue. The test now will be for it to actually happen in practice.’
Elsewhere, Darling's announcement that he will withdraw business asset taper relief could cause serious damage to companies large and small, warned tax experts from Chiltern.
Bernard Sweet, director of corporate tax at Chiltern, says: ‘Many smaller companies, their staff and investors will suffer as this relief is withdrawn - it is a blow to hard-working entrepreneurs.’