The chancellor said his Budget on Wednesday 16 March ‘put stability first’ and ‘backs small business’. The CIOT, though, called it ‘a neutral Budget overall’ in which ‘the biggest tax increase was in corporation tax’.
Much of the detail is published in the government’s Business tax roadmap. Over the next five years, pointed out CIOT tax policy director John Cullinane, ‘companies will be paying over £7bn extra as a result of the decisions announced today … even after the effect of the [corporation tax] reduction announced from 20% to 17% with effect from 2020/21.’ He welcomed as ‘sensible’ the decision to delay by two years the introduction of earlier corporation tax payments for large businesses.
For ‘micro-entrepreneurs’, there will be two new tax-free allowances of £1,000 each for property and trading income from April 2017. Giving this a cautious welcome, ATT president Michael Steed said it would be ‘difficult for the government to sell this as a simple move’ without more clarity around how it will interact with existing rent-a-room relief and whether it will apply only to online traders, or to all micro-entrepreneurs.
On the extension of CGT entrepreneurs’ relief, the ATT wondered whether this incentive for business angels will prompt a shift away from EIS and SEIS. ‘If the provisions can be kept simple’, said Steed, ‘they have the potential to provide a very attractive alternative to EIS and SEIS’.
The new levy on soft drinks attracted headlines in the national press. ‘The challenge with all such levies,’ said Peter Dylewski, chair of the CIOT’s indirect taxes sub-committee, ‘is that if they are successful in achieving their aim, the tax take falls.’
The chancellor said his Budget on Wednesday 16 March ‘put stability first’ and ‘backs small business’. The CIOT, though, called it ‘a neutral Budget overall’ in which ‘the biggest tax increase was in corporation tax’.
Much of the detail is published in the government’s Business tax roadmap. Over the next five years, pointed out CIOT tax policy director John Cullinane, ‘companies will be paying over £7bn extra as a result of the decisions announced today … even after the effect of the [corporation tax] reduction announced from 20% to 17% with effect from 2020/21.’ He welcomed as ‘sensible’ the decision to delay by two years the introduction of earlier corporation tax payments for large businesses.
For ‘micro-entrepreneurs’, there will be two new tax-free allowances of £1,000 each for property and trading income from April 2017. Giving this a cautious welcome, ATT president Michael Steed said it would be ‘difficult for the government to sell this as a simple move’ without more clarity around how it will interact with existing rent-a-room relief and whether it will apply only to online traders, or to all micro-entrepreneurs.
On the extension of CGT entrepreneurs’ relief, the ATT wondered whether this incentive for business angels will prompt a shift away from EIS and SEIS. ‘If the provisions can be kept simple’, said Steed, ‘they have the potential to provide a very attractive alternative to EIS and SEIS’.
The new levy on soft drinks attracted headlines in the national press. ‘The challenge with all such levies,’ said Peter Dylewski, chair of the CIOT’s indirect taxes sub-committee, ‘is that if they are successful in achieving their aim, the tax take falls.’
