South: Moore Blatch responds to Autumn Statement

Moore Blatch partner Jeremy Over comments:

“In the Autumn Statement, SMEs wanted to see measures that will support them in the growth of their business.

“The Government talks about the driving force of the recovery coming from the private sector as a generator of tax receipts and in the Autumn Statement George Osborne seems to have made all the right noises for the continued support of British businesses.  For example, the measures announced for the continued support of peer-to-peer lending and the funding for lending scheme is welcome, as lack of access to credit continues to be one of the biggest challenges faced by SMEs.

“The increase in the research and development tax credit rate will also be welcome, particularly to SMEs in the manufacturing and engineering sectors, as will the extension to the doubling of small business rate relief for another year.

“We frequently see entrepreneurs spurred on to build and then exit their businesses in the knowledge that they will pay only 10% capital gains tax on exit by virtue of entrepreneurs relief and the stated continued support of this in the statement is welcome.

“Caution is however required because Osborne mentioned in passing measures such as clamping down on tax avoidance on special purpose share schemes and benefits in lieu of salary, and the detail of how this would work and therefore what its impact would be on the SME remains to be seen.”