Budget Analysis: Expert Warns of Hidden Taxes
The race is on to the next General Election, but as a result there will be winners and losers among the business community. Speaking at Grant Thornton's annual Budget Breakfast event at Coventry and Warwickshire Chamber of Commerce, John Hodgson, corporate tax partner, said: 'Small businesses and property developers may be among the worst hit by the changes announced, while providers of venture capital look set to benefit.
'The Chancellor has effectively pulled the rug out from under the feet of small businesses with the closure of a tax loophole which enabled them to claim the zero corporation tax rate, in spite of Mr Brown's claims that the Budget was for 'science, education and enterprise'. There is one small crumb of comfort in the increase in first year capital allowances for small businesses, which will rise from 40 to 50 per cent.'
According to Mr Hodgson, property developers may benefit from the new Property Investment Fund rules, but buried in the small print of a review into house building is a proposed new tax.
'Currently, property developers only pay tax once they sell the land they have developed. The Barker Review proposes that tax is charged before the land is sold, at the point when planning permission is granted. …