With expectations of significant, immediate tax increases and spending cuts to tackle the public sector deficit, the budget appears balanced and in many areas, better than was hoped.
Entrepreneurial growth is unlikely to be stifled, but rather encouraged, particular for small to medium sized businesses. While cash flows will need even greater focus with the increase of VAT to 20%, the impact of nil relief for start-ups, the increase of entrepreneurs relief to £5m, despite the 5% qualification threshold remaining, and the increase of CGT to 28% rather than the expected 40% plus, are likely to have a positive impact on entrepreneurial and m&a activity.
Starting a new business can be difficult for advice and assistance from specialist solicitors contact our commercial solicitors on 01942 777777 or vist our business start up services webpage.
By commercial solicitor, Paula Smith