Budget 09: Loss carry back scheme extended
Small businesses to benefit from extension to loss-carry back scheme
Chancellor Alistair Darling has announced a extension to the loss carry-back
scheme.
He said extending the ability of loss-making businesses to reclaim tax on
profits made in the last three years will be available until November 2010.
‘We want to do more to help these businesses with their cash flow problems,’
he said.
Chris Sanger, head of tax policy at ernst & Young, said the extension for
a further year addresses concerns that the announcement at the prer-Budget
report did little to help the self-employed.
‘The extension will help those small businesses to get some cash for the tax
they have paid in the past. For these businesses, the cheque is in the post,’ he
said.
The Chartered Institute of Taxation welcomes the extension.
Ian Menzies-Conacher, chairman of the CIOT’s technical committee, says: ‘The
further extension is very valuable to many small businesses in the current
economic climate and shows that the Government have been listening to
representations made by the professional bodies such as the CIOT.’