Good news in the Budget for SMEs and Entrepreneurs
“The creation of UK Finance for Growth and the Capital Growth Fund should increase private sector investment in UK-based SMEs alongside government investment. While this could be another administrative hoop for SMEs to jump through while they search for appropriate finance, it could provide a new source of finance for businesses that need between £2 million and £10 million for investment and growth,” says Sancho Simmonds, a director in Assurance and Business Services, specialising in entrepreneurs and fast growth businesses.
“This fund has been started with an initial investment of £200 million from a variety of banks, some of which benefited from Government support during the recession.”
“Furthermore, the increase in investment allowances, Entrepreneurs’ Relief and the extension of the Time to Pay scheme will all help entrepreneurs and owners of SMEs,” agrees Adrian Walton, director in Corporate Tax at Smith & Williamson.
“The increase in the threshold of the Annual Investment Allowance to £100,000 is good news in principle, although many SMEs were not reaching the previous threshold of £50,000. The Chancellor has also introduced targeted anti-avoidance rules to ensure this measure is focussed on real business investments,” continued Adrian.
The extension of the Entrepreneurs’ Relief for Capital Gains Tax from £1 million to £2 million of qualifying gains made over a lifetime will support a wider range of business owners and investors. This should encourage greater investment, enabling wider growth potential.
Government has announced a temporary increase in the level of small business rate relief in England, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October 2010. Those small businesses that benefit from the business rate taper (rateable values up to £12,000) will receive significant reductions.
For further information contact:
Sancho Simmonds, Director, Assurance & business services
T: 020 7131 4590
E: Sancho Simmonds
Or
Adrian Walton, Director, Tax services to businesses
T: 020 7131 4180
E: Adrian Walton
PR queries:
Kate Harrison 020 7131 4228
Jess Koslow 020 7131 4264
Matt Rowe 020 7131 4550
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Note to editors
Smith & Williamson is an independent professional and financial services group employing around 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Salisbury, Southampton, and Worcester.
Smith & Williamson Limited
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International
