Emergency Budget: SMEs

SPEED READ SMEs will have received mixed messages from the emergency budget. There were cuts in corporation tax (mainstream and small companies rate), a substantial reduction in the annual investment allowance, and enhanced entrepreneurs' relief for individual chargeable gains. There were also Budget measures concerning SME financing and growth. However, VAT increases and little help for fragile sectors within the economy were less encouraging. Overall the big story may well prove to be the overall review of how SMEs are to be taxed in the future.