Hartshaw's comments on Chancellor's Autumn Statement

November 2011

Steve Vickers
Tax Partner

Sheffield accountancy firm Hart Shaw is urging businesses to carefully study the Chancellor’s Autumn Statement to see if they can benefit from any of his newly announced measures.

George Osborne announced a range of measures aimed at helping small and medium-sized businesses, including a £40 billion National Loan Guarantee Scheme where the Government will underwrite low-interest loans.

From April 2012, anyone investing up to £100,000 in a new start-up business will be eligible for Income Tax relief of 50% under a new Seed Enterprise Investment Scheme (SEIS).

In 2012, any tax on Capital Gains invested in such businesses will also be waived. The Government will also freeze the annual exempt amount for Capital Gains Tax at £10,600 for 2012-13.

Another measure announced is a £1 billion Business Finance Partnership aimed at Britain’s mid-sized companies.

For small businesses, the Government has extended the current business rate relief holiday until April 2013, while other firms will be able to defer 60% of next year’s business rate increase, instead repaying this equally across the following two years.

Mr Osborne announced an “above the line” research and development (R&D) tax credit in 2013 to encourage research and development activity by larger companies. This will be consulted on for the 2012 Budget to ensure that SME R&D tax credits are not reduced as a result of this change.

Steve Vickers, Tax Partner at Hart Shaw Chartered Accountants & Business Advisers said: “George Osborne has announced a raft of proposals, which, on the face of it, will benefit small and medium-sized business.

“We particularly welcome the measures announced regarding the National Loan Guarantee Scheme (NLGS), the new SEIS and the extended rate relief holiday.

“SMEs (small and medium-sized businesses) often find it difficult to access funding. Hopefully, the NLGS will open up new credit lines to help struggling businesses stay afloat.

“However, because of the current uncertain economic climate, it is too early to say whether these measures will help the country get back on its feet.

“Businesses should carefully study the ‘small print’ to see if how they can benefit from any of these announcements. We are only too happy to help businesses who want to know more about these policies.”

For further information, please contact Steve Vickers on T: 0114 251 8850 or email: steve.vickers@hartshaw.co.uk