Press Releases

November 2011

Milsted Langdon Comments on Chancellor's Autumn Statement

South West-based chartered accountancy firm Milsted Langdon is advising businesses to check the details of the Chancellor’s Autumn Statement to see how it could benefit them.

George Osborne announced a raft of measures aimed at helping small and medium-sized businesses, including a £40 billion National Loan Guarantee Scheme where the Government will underwrite low-interest loans.

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. The Government will also freeze the annual exempt amount for Capital Gains Tax at £10,600 for 2012-13.

Another measure announced is a £1 billion Business Finance Partnership aimed at Britain’s mid-sized companies.

For small businesses, the Government has extended the current business rate relief holiday until April 2013, while other firms will be able to defer 60% of next year’s business rate increase, instead repaying this equally across the following two years.

Mr Osborne also announced an “above the line” research and development (R&D) 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.

Roger Isaacs, partner at Milsted Langdon, said: “Business owners will particularly welcome the measures announced regarding the National Loan Guarantee Scheme (NLGS), the new SEIS and the extended rate relief holiday.

“Small businesses are still finding it difficult to access funding, so it is to be hoped that measures such as the NLGS will help open up new lines of credit for firms struggling to obtain it via the more traditional avenues.

“Businesses should take the time to study the details of the Autumn Statement. We are happy to advise anyone wanting to know how they can take advantage of any of the new schemes announced by the Chancellor.”