               |
BUDGET HIGHLIGHTS
BROWN BOOSTS BUSINESS WITH TAX INCENTIVES FOR INVESTMENTGordon Brown has signalled the pivotal role played by small businesses in the UK economy by introducing a range of measures to improve their competitiveness. The Chancellor noted that the number of small businesses has increased by 100,000 to 1.3 million since 1997 and that half of all manufacturing jobs are in the small and medium business sector. To provide fresh impetus to enterprise and entrepreneurship, qualifying investors in both quoted and unquoted companies will benefit from lower tax rates on capital gains. ENCOURAGING ENTERPRISEMr Brown introduced a 100 per cent tax allowance on investment in information technology by small business and also made the 40 per cent capital allowance for SMEs on business assets permanent. He also confirmed a tax credit worth 30 per cent on investment in research and development. Business will also be given assistance with training in the use of the internet and e-commerce facilities. Companies throughout the UK will also enjoy greater access to venture capital. Making specific reference to the 'new' economy, the Chancellor announced improvements in employee share option schemes. This will help companies that want to limit their wage bills but which need to attract staff with attractive total remuneration packages. Mr Brown re-stated his desire to create a wealth-owning democracy. ELIMINATING BOOM AND BUSTThe Chancellor stated that the benefits unveiled in his Budget are the result of his prudent approach to managing the economy. He said the Government was determined to escape the boom/bust cycle and would deliver sustained growth without triggering an increase in inflation beyond the official target of 2.5 per cent. Despite his measures to remove barriers to business and stimulate investment and the significant sums pumped into health, education, transport, and fighting crime, Mr Brown retains a substantial war chest. However, he promised to maintain a disciplined approach and not to substitute consumption for investment.
Front Page | Budget Highlights | Business Tax | Capital Taxes | Duties | Income Tax | VAT | Company Cars
|
