On 28 February the OTS published its final reports on small business issues, which are broken down into three documents, dealing with the following issues, explains Simon Sweetman:
- HMRC administration
- Simpler income tax for the smaller businesses
- A new relief on disincorporation
These are of course recommendations to the Chancellor, who may take what notice of them he pleases. Potentially there could be announcements or even legislation in the budget, though it is perhaps unlikely that things will move so quickly. And of course the dead hand of the Treasury may emasculate any proposals.
But it looks as though there will be a disincorporation relief, which may be good news for people trapped in an inappropriate form. It will however only apply to trading companies, so is of no help to those with companies only holding real estate.