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News Release from: The Forum of Private Business | Subject: New tax burden
Edited by the Buildingtalk Editorial
Team on 15 October 2007
FPB urges members to oppose new tax
burden
The Forum of Private Business (FPB) is petitioning the Chancellor, Alistair Darling, to ease the tax burden following his announcements in the Pre-Budget Report.
Changes to Capital Gains Tax, which were designed to target private equity groups, will also hit owners of smaller businesses The FPB also believes that the prospect of Supplementary Business Rates to fund the Cross Rail project in London will open the floodgates of more taxation, with smaller businesses footing the bill for local authority projects
This article was originally published on Buildingtalk on 7 Aug 2006 at 8.00am (UK)
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The FPB is inviting its members to register their opposition to the Government's latest move, which will see smaller businesses hit in the pocket, whilst big businesses are rubbing their hands after being handed more tax breaks.
Abolishing the Capital Gains Tax Taper Relief system, including the 10% rate levied on some smaller firms' accrued assets, and replacing it with a flat rate of 18%, will, in fact, mean many bigger firms' payments are reduced.
Mr Darling also announced that corporation tax would be slashed - but only at the higher rate.
Smaller businesses will continue to pay the 22% rate, which was raised from 19% in the previous budget.
The Government's White Paper on Supplementary Business Rates heralds the introduction of a new power for local authorities in England to raise extra taxes on top of the national business rates.
It is designed to fund local infrastructure and economic development projects.
The Mayor of London, Ken Livingstone, has already announced that he wants to levy a business rate supplement of two pence in the pound from businesses in Greater London to fund the Cross Rail railway project.
The Government will legislate to enable local authorities to follow suit and introduce an additional tax on properties worth GBP50,000 or more from April 2010.
"We are opposed in principle to supplementary business rates," said the FPB's Campaigns Manager, Matt Hardman.
"Our members believe that they already pay enough taxes".
"Once that door has been opened, it will be the thin end of the wedge - what is there to stop the Government changing the threshold of GBP50,000 and again increasing taxes for smaller businesses, as it has done with Capital Gains Tax?".
To have your say on business taxation and petition the Government, visit the FPB's website at www.fpb.org/fpbpetitions/12.
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