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.
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.”
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states