Miliband warns against capital allowances reform
Up to 200,000 SMEs will lose out under new investment tax plans, according to the Labour leader
SMALL BUSINESSES will suffer from government plans to reform capital allowances, warns Labour leader Ed Miliband.
While the vast majority of businesses will be unaffected by changes to the capital allowances scheme, he warns that up to 200,000 could face higher bills as a result of the changes.
A new annual £25,000 annual investment allowance will replace the current capital allowance scheme. Miliband warned that between 100,00 and 200,00 business that plan to invest beyond the allowance will face a higher tax bill.
The government has claimed that cuts to the corporation tax rate will more than offset the changes to the allowances scheme.
In his autumn conference speech, Miliband is expected to say: “We must end the fast-buck, something-for-nothing culture so that we can build a new economy that serves the interests of British business, of most people, of the next generation and of our nation as a whole.
“We need to face facts about the economic orthodoxy that has underpinned British economic thinking for much of the past 30 years.”