Gov’t confirms tax break for start-up investment

In a bid to help new start-up businesses, Chancellor George Osborne today (29 November) announced tax break schemes for small and start-up businesses.

The Chancellor announced in his Autumn Statement that the government was extending the Enterprise Investment Scheme to help start-up businesses secure the seed investment needed to get off the ground.

Mr Osborne said: “Even at the best of times they can struggle to get the finances they need and in the current credit conditions that struggle too often ends in failure.”

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From April 2012, anyone investing up to £100,000 in qualifying start up businesses will be eligible for tax relief of 50 per cent, regardless of the rate at which they pay tax.

In 2012, the government it will waive any tax on capital gains invested through its ‘Start Up Britain’ scheme.

Mr Osborne said the government will finance this with a freeze on the general capital gains tax threshold for next year.

To keep firms based in the UK, the corporate tax rate will fall to 25 per cent next April, down from the current 26 per cent.

He said: “It’s no good endlessly comparing ourselves with other European countries. The entire continent is pricing itself out of the world economy.”