TaxCorporate TaxBudget 2003: Small business tax threshold raised

Budget 2003: Small business tax threshold raised

The qualifying threshold for small business tax has been raised to £20m in today's Budget, the maximum allowed under EU law, as part of a raft of new measures aimed at stimulating this sector.

Link: Budget special

The move means that an extra 3.7 million businesses will be able to obtain the 40% investment allowance.

Other measures aimed at boosting entrepeneurship and small businesses include the setting up of a web-based training directory in partnership with high street banks, raising the taxable turnover limit for VAT from £55,000 to £56,000 and a new incentive scheme to encourage SMEs to enter into the VAT system.

A new consultation has also been launched – Bridging the Finance Gap – aimed at improving SMEs access to growth capital.

Paymaster general Dawn Primarolo said: ‘This Budget takes further steps to strengthen the business environment and to ensure that all regions in the UK are able to share in a dynamic and enteprising economy.’

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