THE CHANCELLOR has announced the fourth change in annual investment allowances for SMEs in five years in today’s Autumn Statement.
The change sees the allowance rise tenfold from £25,000 to £250,000 as he bids to stimulate corporate investment among small businesses.
Since April 2008, the rate has changed from £50,000 to £100,000, then last year dropped to £25,000 and now has been increased to £250,000.
It may be seen as another U-turn by George Osborne after he reduced the allowance last year from £100,000 to £25,000.
Reeves tax partner Geraint Jones said: “The government needs to develop a clear and consistent policy in this area so that companies can have clarity and certainty over their future capital investment.”
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
MTD cost estimates are not based on 'facts', and are 'disbelieved' by most small businesses and sole traders, says Lords committee chairman