Budget 2012: Tax Expert Reacts To Announcement

Some Measures Set To Be 'Positive For Business'


A lawyer at Irwin Mitchell has given his response to the Government’s latest Budget announcement.

Alex Barnes, a tax Partner based in Irwin Mitchell’s Birmingham office, said some of the initiatives announced will be positive for business.

He outlined: “The main rate of corporation tax has been reduced to 24% from April 2012 which is the lowest main rate of corporation tax in the G7 and the fourth lowest in the G20.
“Access to finance for small businesses from banks and non-banks should be improved through a number of measures including the launch of the National Loan Guarantee Scheme, the proposed Business Finance Partnership and the Enterprise Finance Guarantee Scheme.
“The Government has agreed to make enhanced capital allowances available at designated sites in Scotland and the London Royal Docks which should encourage development in those areas and lead to new job creation. There is also to be new corporation tax reliefs introduced (subject to state aid approval) to support technological innovation.
“Investment in infrastructure and housing is to be encouraged through a series of initiatives and this will be welcomed by the construction industry that is still struggling following the recession. 

“Ultimately, the Budget 2012 is a good Budget for business.”