Pictured above: Partners Leigh Day and Graham Beach
from accountancy practice Leigh Graham Associates and senior
consultants Chris Payton and Gordon Hay from Leigh Graham Financial
Planning say this week's emergency budget is good news for
business growth
This week's emergency budget has been welcomed by a Stratford
accountancy firm as a boost for business and entrepreneurs, with
feared savage changes nowhere near as bad as anticipated.
Graham Beach, tax partner at John Street's Leigh Graham
Associates, said that among the various tax changes there was a
real focus on business growth.
The firm has gained a clutch of new clients keen to ensure they
made the most of their investments as a result of a seminar, hosted
by its financial advice division Leigh Graham Financial Planning, a
few days before the budget.
"Companies paying the main rate of corporation tax will see a 1%
annual reduction in the rate from April 2011, with a fall in the
small company rate to 20%. Although this will be partly financed by
a cut in the rate of capital allowances, the overall effect is to
reduce corporate tax by over £1 billion per annum. This is a
welcome saving for companies of all sizes.
"We had feared an increase in Capital Gains Tax but it's
probably fair to say that the changes - 28% up from 18% for higher
rate tax payers - were not as bad as had been feared. The
unexpected and most welcome news was the limit for entrepreneurs'
relief is being increased from £2 million to £5
million. This allows entrepreneurs to release gains of £5
million and pay tax at 10% on those gains.
"But the widely anticipated VAT increase, estimated to raise
over £13bn a year by the end of parliament, is a cause of
concern for small business, in particular our retail clients within
Stratford, many of which are still in recovery from the recession,"
added Graham.
"Overall, it's probably the case that the lower half of the
income spectrum will not be worse off - but the upper half will
bear the brunt of tax rises. However these are not as bad as we
originally anticipated."
Chris Payton, senior consultant at Leigh Graham Financial
Planning welcomed the announcement that the government plans to
simplify the complex pension rules for higher rate tax
payers.
"It's still early days, but it is being suggested that the
reduction of the annual allowance to between £45,000 and
£30,000 might maintain the relief for higher rate tax
payers," he said.
For more information on Leigh Graham Financial Planning, view
their website here: www.leighgraham.co.uk