Pre-budget report offers relief to small businesses

Posted on 25 November 2008

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Small business owners have been offered financial support by the chancellor's pre-budget report, unveiled yesterday by Alistair Darling in the House of Commons.

A new £1 billion survival fund has, as predicted by many, been established to provide emergency loans for small enterprises, while firms will also be allowed to offset any losses up to £50,000 against profits from the last three years.

In further boosts to business owners struggling in a difficult economic climate, small businesses will be allowed to spread tax payments out over the course of the year, a planned rise in corporation tax has been deferred and empty property tax exemptions will be allowed on properties up to a rateable value of £15,000.

John Walker, the national policy chairman of the Federation of Small Businesses, said the pre-budget report had reflected the importance of small businesses to the UK economy.

The government's Small Business Finance Scheme would provide "a vital cash boost" to businesses struggling against rising costs in a tough lending climate, he claimed.

Mr Walker added: "Many of these measures, such as giving businesses longer time to pay bills and offsetting losses, will give small businesses a welcome breather from the taxman and allow them to concentrate on sustaining their business, supporting their staff and growing the economy in the long term."

The chancellor's report also announced that plans to legislate on so-called "income shifting" within family businesses had been postponed.

Category: Tax & Legislation News

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