Press Release
Stability replaces Prudence!
Whereas Gordon Brown’s buzzword was prudence, Mr Darling’s is stability.
There were no startling headlines. After all, all the interesting things had already been announced.
Changes to capital gains tax proceed as expected, with an 18% flat rate. The Entrepreneur’s Relief giving a 10% CGT rate on the first £1 million of business gains is as expected.
The changes to the non-doms rules will proceed, but there are some welcome measures introduced to tackle various anomalies. At least I welcome the promise that there will be no more changes in this Parliament or the next...
I am surprised that there was no announcement of a further alignment of corporation tax for large and small companies.
Of great interest to small businesses is the so-called income shifting rules. Despite having months of consultation the Government now says it wants more, so legislation will not be introduced until at least 2009. I welcome the fact that our concerns are being listened too, but deplore the continued uncertainty for small businesses and their owners. How can people make sensible decisions for the future?
I welcome the changes to the Enterprise Investment Scheme and Enterprise Management Incentive schemes, but this was about the only time innovation and entrepreneurship was mentioned.
Tucked away in the small print are some welcome changes to the Research and Development Tax Credit system; the rate of relief for small and medium companies rises from 150% to 175%, and for large companies from 125% to 130%.
Ends.
For more information, please contact Eleanor Cummings on 020 7535 5567 / 07972 004 142.
Notes to editors
About Tenon
Tenon is a leading provider of accounting and business advice to entrepreneurs, providing clients with expertise in Business Services, Tax, Financial Services, Corporate Finance, Recovery, Outsourcing and Forensic Accountancy. Tenon is the 9th largest UK accountancy firm with over 1900 staff UK wide and a turnover of £137.1m. Operating through a network of 47 offices, Tenon is able to offer local expertise but with the backing of a national plc.
About Andrew Jupp
Andrew Jupp is Tenon’s National Head of Tax. Prior to joining Tenon he was a tax partner with Ernst & Young, for much of that time leading the firm's South Region Entrepreneurial Growth Markets practice. Andrew is an experienced chartered accountant and has always specialised as working with entrepreneurial and middle market clients. He has worked on many IPOs and over 50 trade sales and MBOs. He sees his role very much as an all-round business advisor, working with his clients from early stages in their growth through to the ultimate realisation of shareholder value. He views tax as simply another business expense that needs to be managed, minimising both compliance costs as the business grows and minimising taxation on the ultimate exit. Andrew regularly writes and broadcasts on issues affecting entrepreneurial businesses and the people behind them.
In 2007, Tenon sponsored a new award category at the National Business Awards - The Tenon Award for Entrepreneurial Spirit.
