Budget 08: Darling raises funds for small businesses

Small businesses have been given a partial boost by the Chancellor.

The income tax relief threshold on investments is raised by 25% to £500,000
from £400,000. The employee share limit for tax relief under the Enterprise
Management Incentive scheme will also increase from £100,000 to £120,000.

Despite the boost, entrepeneurs will still pay a flat rate of 18% on capital
gains. Only those with more than a 5% stake in a company will qualify for the
entrepreneurs’ relief of a 10% tax rate on the first £1m of business asset

Related reading