What’s Expected in Budget 2008 for Small Business?
Alistair Darling prepares to deliver Budget 2008 but what will it mean for your small business?
The budget 2008 announcement is due in less than an hour (12:30pm) and we’ve had the Federation of Small Business (FSB) and the Confederation of British Industry (CBI) calling for the chancellor to be kind to Britain’s hard-working small firm owners. But will the chancellor listen and respond to these calls in his virgin budget? Will he meet halfway? Or will Britain’s entrepreneurs be burdened with yet more red tape and bureaucracy?
Already there is rumour that the 2p increase on fuel duty could be delayed. That would certainly be good news for the many UK businesses that rely so heavily on transport and would be a victory for the truckers who met the chancellor last month . It’s believed that a combination of worldwide economic uncertainty coupled with soaring oil prices has led to a "wait and see" decision before burdening firms with greater transport costs.
Taper relief is to be abolished, as a new flat rate of Capital Gains Tax at 18% is introduced. The relief, originally started back in 1998 to encourage long-term growth and investment will be sorely missed but there are concessions that a 10% rate will be introduced on gains of up to £1million.