Eastleigh: HWB tax specialist comments on Budget
According to Alan Rolfe, tax specialist at HWB, Southampton-based accountants and business advisers, this was a broadly positive Budget with the small and medium business in particular coming out well.
He said: "No great surprise with the Brexit vote looming, a reduction in forecasts and ‘storm clouds’ on the global economy still brewing. It’s safe to say the chancellor would have been reluctant to introduce a raft of unpopular measures.
"A key announcement for local businesses was the reduction in small business tax relief which has more than doubled. 6,000 small businesses will pay no rates and 250,000 have their rates cuts from April 2017. Commercial stamp duty has also been cut and Class 2 NIC abolished for what Osborne called the ‘army of self-employed’.
"The cut in Corporation Tax to 17% by 2020 is more about attracting foreign investment – but obviously UK businesses will benefit from this reduction. It will also help to soften the recent increases in dividend tax.
"Capital Gains Tax reduction from 28% to 20% and from 18% to 10% from April 6 is also a positive move for businesses – although not for landlords of residential property where existing rates remain. The tax avoidance and evasion crackdown continues although these latest measures were again more focused on international businesses rather than UK companies.
"On the whole local business can be pleased with the measures introduced – it’s now about waiting for the fallout over Brexit uncertainty."
