Firm News

Moore Thompson chartered accountants cautiously optimistic about Autumn Statement

Lincolnshire-based chartered accountants Moore Thompson is urging businesses to carefully study the Chancellor’s Autumn Statement to see if they can benefit from any of his announcements.

Among the measures declared by George Osborne that could have major repercussions for small and medium sized businesses include a £40 billion National Loan Guarantee Scheme where the Government will underwrite loans – Mr Osborne estimates that this will cut the average interest rate faced by those firms by 1%.

In addition 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.

More over the Government will freeze the annual exempt amount for Capital Gains Tax at £10,600 for 2012-13.

Another measure announced included a £1 billion business-finance partnership aimed at Britain’s mid-sized companies.

In another move that will benefit small businesses, the Government has extended the current small business rate relief holiday for a further six months from 1 October 2012.

The Government will also give businesses the opportunity to defer 60 pc of the increase in their 2012/13 business rate bills, to be repaid equally across the following two years.

In an R&D u-turn, Mr Osborne announced an “above the line” 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.

Mark Hildred, managing partner at Moore Thompson, said: “George Osborne has announced a raft of proposals, which, on the face of it, will benefit small and medium sized business, many of whom are our clients.

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

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

“However because of the current uncertain economic times, it is difficult to say whether, in the long run, these incentives will really get the country back up and running.

“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 make sense of these policies.”

Top