Capital Allowances here to stay…..

Business Forum on Tax and Competitiveness Meeting

I often get asked if Capital Allowances could disappear, or if the legislation can change so that they are no longer available. This is extremely unlikely as highlighted by a recent Treasury meeting.

Chairing the Business Forum on Tax and Competitiveness Meeting Minutes on 8 May 2014, the Exchequer Secretary to the Treasury David Gauke discussed various items with key business owners.

I’d like to draw your attention to Item 3, “Business ideas for longer-term competitive reforms”

“As there will be a new Parliament next year”, the Exchequer Secretary asked members “for their views on priorities for business taxation”.

Members noted that reform of the corporate tax system since 2010 had been very positive and had increased the UK’s competitive environment.

Going forward, members emphasised the importance of stability in the tax system. Members said that personal tax, as well as corporate tax, mattered in terms of international competitiveness, and so the top rate of income tax was very influential. Skilled labour was essential to the recovery and their remained a shortage of engineers and scientists in the UK. The Government should consider the tax treatment of traditional retail businesses vs. that of online businesses. Beyond tax, they asked the Government to focus on SMEs – who are vital parts of the supply chain for large firms – and making access to finance easier.

Give me a call to discuss – 07595 398 781 – Arthur Kemp

 

Other attendees include Andrew Nelson – Group Finance Director, Amey, Andy Halford – ex-Vodafone CFO, Mark Elborne – President & CEO, GE, Simon Dingemans – CFO, GSK, Simon Henry – CFO, Royal Dutch Shell, HM Treasury: Dennis Lu, Ian Goode, Mike Williams & John Staples.

 

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