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31 Oct 2011
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.
Further reading
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."
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Visitor comments Add your comment
Out of balance
The cut in annual investment allowances will affect small businesses the hardest, whilst the drop in the Corporation Tax rate will primarily benefit larger businesses. What is needed is a specific set of measures designed to help micro-businesses, to help mop up unemployment.
Posted by: Mike, 31 Oct 2011 | 13:31
Small and Micro Businesses
We are constantly told that small and micro businesses are the engine that will drive us out of the recession further that this is the sector that will achieve the most success in reducing unemployment. Yet little or nothing is done specifically to aid this sector. In fact Political Parties seem bereft of ideas to help. Big business is of course always helped out either directly by Tax Reductions such as detailed or indirectly by "mistakes" by HMRC officials. If the Government really wants to help the small business sector it better start understanding it first. Tony Margaritelli - Chair ICPA
Posted by: Tony Margaritelli, 31 Oct 2011 | 16:33