No-one can be surprised that the Budget failed to address the big economic questions given the looming election. Few will have expected any radical tax changes. In view of the low expectations does it make sense to call the Budget disappointing? Well yes it does because not only has the Budget done nothing very useful but it has also created confusion about direction of travel in areas where there was no need to do anything at all.
One example is the relationship between the financial accounts and taxable profits. Our tax system is increasingly reliant on accounting standards as a starting point for determining taxable profits but the increased Annual Investment Allowance (AIA) moves in the opposite direction towards an expenditure base. Although this direction has its supporters and the increased allowance has been welcomed by small businesses and their advisers how logical...
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