Oct
24
Small Companies tax cut
October 24, 2007 |
A David Cameron-led government would reverse the inflated tax rate on
small business owners whose annual profits are under £300,000, it
emerged yesterday. Speaking to a group of entrepreneurs, George Osborne, the shadow
chancellor, said his party would scrap a £50,000 investment scheme to
pay for lower corporation tax. The Tories believe small companies would prefer lower headline taxes
instead of having to apply to retain cash they spend on equipment, as
the scheme proposes.
The UK trade group for freelancers has said offering an annual
allowance of £50,000 for investment in specific machinery suggests all
companies wish to expand.
“Yet this fails to recognise that many businesses do not wish to grow:
not all B&Bs want to be the next Hilton chain, and not all
one-person consulting company wants to be the next KPMG,” the PCG said.
Also helping the Tories reposition themselves as the traditional party
for enterprise is their pledge to vote down the Finance Bill,
legislation which would action a hike to capital gains tax, from April.
In fact, the meeting Mr Osborne addressed was called to discuss the 80%
increase to CGT, which this week unified all four of the UK’s main
business groups in opposition.
For only the third time in 17 years, the CBI, the British Chambers of
Commerce, the FSB and the Institute of Directors joined forces to
protest about a single issue.