Taxation
George Osborne presented his ‘Emergency’ Budget on Tuesday 22 June 2010, against a background of enormous Government debt. This is a budget that affects everyone whether in business or not and, whilst it could have been better, it could also have been a lot worse.
A lot of tax rates have remained the same or are being changed as already announced by the previous Government, such as the 50% highest rate of tax and the increase in the rates of national insurance.
The main tax increase in this budget is the anticipated rise in the VAT rate from 17.5% to 20% with effect from 4 January 2011.
The rise in Capital Gains Tax was not as bad as had been widely anticipated and is softened by an increase in the entrepreneur’s relief from £2,000,000 to £5,000,000.
Taxation
Small Business Rate Relief
Please find below two links to information on Small Business Rate Relief which you might be entitled to claim.
The government in the Budget introduced a temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October 2010. In addition, small businesses benefitting from rate relief taper (rateable values up to £12,000) will receive “significant reductions”. Unfortunately I have been unable to find any further information on this. If anyone cast any further light on the issue I would be grateful to know.
The link to the taxation website is I think the most informative. I use this website on a regular basis the section on tax articles is invaluable and its free!!
Tax Efficient Sponsorship and Business Networks
Julie Butler asks whether a business person can obtain tax relief on sponsorship and general networking
Introduction
In the recent recession it might seem “corporate hospitality” is a dirty word but businesses need to grow. Can sponsorship be tax allowable?
The recent McQueen v R & C Commrs [2007] Sp C 601 case has resulted in a helpful and favourable result for those involved in commercial sponsorship of competitors of sports activities. In McQueen, it was shown that the marketing advantage was not vague and uncertain but was clear and successful. There was evidence to demonstrate a direct correlation between sponsorship and the gaining of new clients.
The Commissioner’s view was that the expenditure had been incurred for the purpose of promoting the business and getting names and liveries into the public awareness. Although the taxpayer gained some personal satisfaction from competing in rallies, his preferred leisure activity was sailing rather than rallying and the private satisfaction of success on the rally circuit was an incidental benefit of expenditure rather than its purpose.
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