Birmingham-based chartered accountants JW Hinks 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.
Paul Jones, Managing Partner at JW Hinks, 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."