Brabners Chaffe Street Solicitors - Corporate Services

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Autumn Statement - tax announcements
29/11/2011

In today's Autumn Statement, two tax announcements were made by the Chancellor George Osborne as part of the Government's vision to make the UK the best place in Europe to start, finance and grow a business:

1. The Government is introducing the new Seed Enterprise Investment Scheme (SEIS) to encourage investment in new start up companies. This will be in addition to Enterprise Investment Scheme and Venture Capital Trusts which are currently available to individuals.

The proposed SEIS will provide 50% income tax relief for individuals who invest in shares in qualifying companies. There will be an annual investment limit of £100,000 for individuals.

In addition the Government will also offer individuals a CGT exemption on any capital gains made from a disposal in 2012-13 which is re-invested through SEIS in the same tax year.

2. To encourage investment in the Enterprise Zones (which includes Liverpool), the Government has announced that it will make available enhanced capital allowances. This means that any capital expenditure on plant and machinery in these areas between April 2012 and March 2017 will qualify for 100% tax relief.

William Ngan, Chartered Tax Adviser and Corporate Associate at North West law firm Brabners Chaffe Street comments:

“Whilst the announcements relating to tax were few, the SEIS proposal with the tax breaks will help encourage investment by private investors in small start up businesses. The Government has been accused of paying too much attention to large businesses so any proposal to help small businesses is a good thing. Similarly any tax breaks to encourage investment in Liverpool is welcome and a boost to the City.”


For further information contact William Ngan at Brabners Chaffe Street on 0151 600 3128

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