PBR 2007: Small business taxation. By Nichola Ross Martin
Poor old small business! The Pre-Budget Report does not give much encouragement to do anything other than sell up, it seems. Where did things all go so badly wrong?
We all know that the root cause of the anti-small business strategy lay in the introduction of the 0% starting rate for corporation tax. This positively encouraged enterprise as the resultant rash of incorporations amply illustrated. Unfortunately, these were illustrative of the wrong sort of "enterprise" and it was unlikely that any chancellor to continue commending such tax breaks to the House.