Chancellors Mini Budget What To Expect

Chancellors Mini Budget What To Expect.

According to reports, a new enterprise investment scheme is expected to be announced, which will offer investors 50% tax relief on money put into new businesses.  

The scheme will start next April and the 50% tax relief will be offered on the first £100,000 of investment into a firm with each company eligible for up to a total investment amount of £150,000.  It will run alongside a capital gains tax holiday for the first year to encourage those sitting on profits from previous investment to put the money into new start ups.

Small companies will also see the one year business rate holiday, currently due to end in October 2012 extended by 6 months.  According to Chancellor George Osborne he believes that 500,000 will benefit from the tax break, with 330,00 paying no business rates at all in the 2012/13 financial year.

Other announcements due from the Chancellor are:

• A National Loan Guarantee Scheme to underwrite up to £40bn of loans to smaller firms.
• An increase in the bank levy from 0.075% to 1%.
• A one year delay to auto-enrolment for small businesses.
• A plan to encourage pension funds to invest up to £20bn, alongside £5bn from the Government in infrastructure projects.
• A new tax avoidance crackdown, including the targeting of those avoiding stamp duty on expensive properties.