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Owner managed businesses and entrepreneurs

You will find listed here all articles related to Pre-Budget Report 2009 - Owner managed businesses and entrepreneurs.

Low Carbon Economy Measures

Most of the measures announced in the Pre-Budget Report for supporting low carbon growth will cost the Government very little, and will take quite some time to percolate through to the economy. The largest measures will impact people and businesses through their utility bills, rather than through their tax bill.

Workplace canteens “sacrificed”

The Chancellor announced changes to a specific tax exemption relating to the provision of free or subsidised meals in a canteen at or on the employer’s business premises where provided in conjunction with a salary sacrifice or flexible benefits arrangement.

Research and Development Tax Incentives

In the UK, there are two parallel systems providing enhanced relief for research and development expenditure.

Changes to accounting standards for financial instruments

This measure is relevant to companies that have adopted International Accounting Standard (IAS) 39 which covers the recognition and measurement of financial instruments, or its UK equivalent Financial Reporting Standard 26 (FRS 26). It seeks to ensure that tax legislation will reflect changes that the International Accounting Standards Board is proposing to make to IAS39 and which are expected to be followed by corresponding amendments to FRS 26 by the UK Accounting Standards Board.

Interest expense – post enactment changes to the world wide debt cap

Rather embarrassingly for the government, changes have been announced to the worldwide debt cap rules as enacted by Finance Act 2009. The amendments do not change the legislation significantly, but rather seek to correct what might be considered to be errors or anomalies. These changes will take effect from 1 January 2010 and therefore the amended rules will apply to groups of companies for the first period in which they may be subject to a debt cap restriction. As such it is important that groups use the amended legislation when analysing the extent to which the legislation impacts upon them. Draft legislation has been issued and comments are invited by HMRC, the closing date for which is 29 January 2010.

Indirect tax

The Pre-Budget Report confirmed that the standard rate of VAT will revert to 17.5% with effect from 1 January 2010. However, The Chancellor surprised some observers by making no further changes to the VAT regime, or to announce any further increase in the rate of VAT. The increase to 17.5% will put further pressure on hard pressed retailers, however given the need to raise additional revenue they may feel that the decision not to increase the rate beyond 17.5% was probably the best possible outcome.

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