05-11-2007
CGT identified as chief business finance issue
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Capital gains tax (CGT) has been singled out as "the big issue" affecting business finance in the current climate.
According to the British Chamber of Commerce (BCC), CGT is a tax that can cause particular damage to small to medium-sized enterprises in the UK as they often have little support on the business finance front.
Speaking during Small Business Week, a spokesman for the BCC said that even with chancellor Alistair Darling's plans for relief for small businesses, firms may not be protected enough.
"Small businesses are the backbone of the economy, the life blood. A huge percentage of [Britain's] annual turnover comes from small businesses," he said.
"It is a shame that things like CGT [rises] can pop out of nowhere with no consultation, or certainly none with us."
A recent report by BT revealed that small businesses account for 47.1 per cent of UK employment and 37.2 per cent of turnover.