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News - 21 December 2003
|Prudence vs generosity?|
Is Gordon Hinting at a Reversal of Tax Gift to SMEs?
Gordon Brown gave a much needed break to small businesses in the 2002 budget when he allowed the first £10,000 of profits for limited companies to be tax free. Now it seems he might have changed his mind.
The idea of the “gift” was to encourage self-employed people to become limited companies. The £10,000 allowance reduced the average tax bill by nearly £2,000 and for many small firms it meant that no tax was due at all. Now the Chancellor is saying that he will “bring forward proposals for action in 2004 to ensure the right amount of tax is paid by owner managers”. Could he be hinting that prudence has won over generosity?
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