Budget ignores companies' organic growth
Concerns are growing that the chancellor has not done enough to encourage organic growth within companies after announcing new proposals for deferred relief on substantial share holdings.
Concerns are growing that the chancellor has not done enough to encourage organic growth within companies after announcing new proposals for deferred relief on substantial share holdings.
The government wants to offer relief on gains made on the disposal of substantial share holdings if they are reinvested in another company.
Gordon Brown announced in his Budget today that consultation would continue on the matter with a view to bringing in new regulations by 2002.
But there are new proposals that a substantial shareholding would only have to be a 20% stake instead of 30%, and would only need to be held for 12 months instead of two years.
Fears are that the measure will over encourage growth through acquisition without a comparable measure to promote organic growth.
Chas Roy-Chowdhury, head of taxation at the ACCA, said: ‘There should be a twin track approach offering the same relief for organic growth.’
A launch date of 2002 is also worrying tax managers because companies are known to have begun holding back on investment in the hope of the deferrel relief coming through.
The government however, sees the measures as making it easier to invest in business by offering more flexible terms.
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article