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Budget 2010 – our views

March 25th, 2010

Our summary of what was in the Budget yesterday, 24 March 2010, is now available to download from our website.

The Budget didn’t contain any real surprises. There is some help for smaller businesses included in the budget but how many small businesses spend their £50,000 annual investment allowances for 100% tax relief, never mind the £100,000 now available?

Businesses are also facing an increase in the small business rate of tax to 22% from April 2011 as well as increased NI costs by 1% from April 2011.

The good news comes for clients wishing to sell their businesses. Entrepreneurs Relief which effectively reduces the rate of tax to 10% (from 18%) for all qualifying lifetime gains up to £1m is now extended to £2m for disposals after 1 April 2010.

Our feeling overall is that this was not a giveaway budget for most of our clients by any means as the measures taken to help small businesses through these difficult times aren’t enough to help the smaller businesses who really need it.

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