Has the Labour government done serious harm to the enterprise culture by its recent reforms on tax?
Chris Fry, head of tax at KPMG in Manchester NO While it is easy to see why small businesses might feel hard done by seeing as this is the second time in 12 months that they’ve been hit by increases in tax, it nevertheless shouldn’t deter entrepreneurs from establishing and running long-term business enterprises. After all, they are more likely to be focused on the day-to-day running of the business itself, rather than the rate of tax they will pay if and when it is sold. Furthermore, tax efficient investment is still possible in smaller businesses through the Enterprise Investment Scheme, so it may be those middle market companies seeking to raise financing through private equity who are ultimately affected. Alison Small, Managing Director, City Invoice Finance YES The region’s small business community will not be helped by the increase in rates and changes to capital gains tax. The new plans, which appear to be mainly targeted at private equity, will hit small businesses especially h
