|
The first pre-Budget report from chancellor Alistair Darling has placed emphasis on tightening up the private equity industry and tax avoidance schemes.
The government had been placed under pressure following months of protests over tax breaks for private equity firms and Mr Darling has now announced that taper relief, which allows private equity firms to pay only ten per cent on assets owned for at least two years, will be abolished.
To take its place, there will a new flat rate of 18 per cent which the Treasury says will ensure that private equity firms will pay a fairer share.
Critics say that the new measures could reduce the amount of funding available to smaller businesses, who are already seeing difficult times with the current credit-crunch and may have to revise their tax planning.
Mr Darling also announced a cut of 2p in the pound to 28p in corporation tax and revised his GDP growth forecast for 2008 from 2.5-3 per cent to 2-2.5 per cent.
David Kern, economic adviser to the British Chambers of Commerce said: "We are disappointed that [Mr Darling] did not take the opportunity to reverse the increase in small companies corporation tax announced at the same time."
He added: "Reflecting the lower growth forecast the chancellor found it necessary to raise his borrowing figures for the next few years. This was expected but heightens concerns amongst businesses that further tax increases may be needed in future years."
See copyright notice
| Other
Top Business News Stories |
|
Business
News 
