As the small business and company formation sector waits with baited breath to see how the government’s Emergency Budget will affect enterprise, they may not be aware of how an increase in Capital Games Tax could negatively impact their company both in the long and short term.
Regardless of the fact that the government’s planned increase in CGT will discount all enterprise activity, small business groups have warned David Cameron’s coalition to be prepared for a major reduction in the number of people willing to invest in businesses, as a result of the changes.
Matthew Grimes, spokesperson for the Forum of Small Business and Enterprise, comments on the changes;
“While small business and company formation owners have been preoccupied with worrying about the impact of the planned VAT rise, many are unaware that an increase in Capital Games Tax could have a similarly negative impact on their companies.”
“Increasing Capital Games Tax while simultaneously pledging to make the Corporation Tax process more streamlined is ultimately a contradiction in terms.”