Tuesday, 29 November 2011

Small business investors to be given 50pc tax relief

A new tax plan will see people who put money into developing small firms given 50 per cent income tax relief and a one-year capital gains tax holiday.The new plan was announced by Chancellor George Osborne in his Autumn Statement today, and will go under the name of the Seed Enterprise Investment Scheme (SEIS). The capital gains tax allowance of £10,600, however, will be frozen to pay for the new incentives and not, as expected, rise to £11,100 in April 2012.The aim of the SEIS is to grow British business from the smallest level up, to help towards a stable and sustainable economic recovery. It will see people who usually save in Isas or share portfolios offered lucrative incentives to relocate their savings. Regardless of the income tax bracket they are in, investors will be able to dedicate as much as £100,000 to the fund and subsequently gain the 50 per cent tax relief. Economists have predicted that the SEIS scheme will allow any gains made from the investment to be tax free and said that, if the invested money has come from another investment and is paid in during the 2012-13 tax year, then the investor would be exempt from capital gains tax implications.

http://www.50percenttax.co.uk/index/2011/11/29/small-business-investors-to-be-given-50pc-tax-relief.html

No comments:

Post a Comment