Small businesses owners and their representative bodies felt aggrieved when the Chancellor annoucned a 2p cut in corporation for big firms, and then immediately said that small businesses would see their rate rise by a similar amount.

George Osbourne said; “I think we should have a lower and simpler tax system for small firms.”

Before the Budget, the Conservatives announced plans to reduce the main rate of corporation tax from 30% to 27%, paid for by cutting back on allowances and reliefs and it is understood that the party’s tax advisers are working on a similar plan for smaller firms.

That will come too late for many small firms, however, who will see their corporation-tax rate rise to 20 per cent next month and to 22 per cent by April 2009.

Full article Tory business tax pledge - Sunday Times, March 2007

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Susie Hughes
The Editor © Hardhatter 2007