Business tax 'Protection' for manufacturers
The Chancellor has indicated that his first Budget on 22 June will give manufacturers some protection from the effect of any reduction in capital allowances. The Conservatives' election manifesto pledged a cut in headline corporation tax rates funded by 'reducing complex reliefs and allowances' but the initial coalition agreement released on 12 May did not mention corporation tax.
The final coalition agreement published on the Cabinet Office website as Tax Journal went to press (see www.lexisurl.com/tfRYd) included undertakings to review the IR35 legislation 'as part of a wholesale review of all small business taxation' and the taxation of non-domiciled individuals. It pledged measures to fulfil EU treaty obligations in relation to holiday lettings 'that do not penalise UK-based businesses'.
Vince Cable the Business Secretary was reported to have pressed George Osborne to heed concerns expressed by the manufacturers'...
