According to the Guildford office of the UK top ten accountancy firm PKF, today’s (24 March) pre-election Budget speech from Chancellor Alistair Darling brought a mixed bag of measures for Surrey businesses.
Jeff Jeffries, assurance partner, PKF Guildford says:
“The removal of stamp duty for first time buyers purchasing homes below £250,000 is a welcome move injecting some stimuli into the local property market which has slowed in recent months. However, the increase in stamp duty to 5% for properties over £1m next year will be less welcomed by those purchasing homes in this bracket of which there are a large proportion here in Surrey.”
“For enterprise, there were a number of encouraging measures for small businesses such as adjustments to business rates; continuation of the time to pay arrangements; and the doubling of entrepreneurs’ relief for capital gains tax from £1m to £2m and enhanced capital allowances.”
“The economy is not out of the woods yet so providing support for Surrey businesses through tax deferral arrangements and access to loans is vital to protect them until the economy recovers fully.”
Jon Hills, tax partner, PKF Guildford adds:
“The Chancellor’s forecast to borrow only £74bn in five years time while less than the current £163bn remains a substantial figure and at the end of the day it is still borrowing with interest.”
“While there were no significant tax increases in today’s Budget, it must not be forgotten that last year’s pre-Budget report announcement to increase National Insurance Contributions by 1% in 2011/12 still stands and when imposed will prove burdensome for Surrey businesses.”
“Most impressive was the increase in the Annual Investment Allowance from £50,000 to £100,000 which will enable companies purchasing plant and machinery up to £100,000 – of which there are many in the Guildford and Surrey area – to claim tax relief on the full amount in year one.”
So some welcome moves to encourage local enterprise but beware of the tax rises to come.
For further information contact the PKF Guildford office direct
