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The Budget – Key Points for Small Businesses

Yesterday’s Budget was particularly relevant for the small business world. Here we break down the key points that you need to be aware of:

Cuts to Business Rates

Business rates? These are a tax on non-domestic properties that would apply to shops, offices, pubs and holiday rental homes.

Corporation Tax and Capital Gains Tax Reductions

Corporation Tax? These are taxes on profits made by businesses in a certain period. Capital Gains Tax? This is a kind of tax levied on profit from the sale of a non-inventory asset.

Class 2 National Insurance Removed

National Insurance? This is a list of contributions paid by workers and employers which go towards funding state benefits, such as pensions, illness and unemployment.

Extension of Entrepreneurs Relief

Entrepreneurs Relief? This is a government scheme that was set up to help provide people selling their business a reduced rate of capital gains tax. This scheme can be used by business individuals such as sole traders and limited company shareholders.

Tax Reductions on Sharing Economy

The Sharing Economy can be understood as a system built around the system of sharing resources. Companies such as Airbnb, Zopa and Netflix would all be considered a part of the Sharing Economy.

Increased Devolution

Devolution is the process of whereby power is transferred from central government and local councils are given more freedom to dictate their own policies.


This Budget has already been hailed as a triumph for small business. Director of the FSB Mike Cherry stated that:

“In a budget constrained by both the need to reduce the deficit and economic outlook, the Chancellor has listened to our calls for the tax system to be made simpler for small businesses and the self-employed and taken important action on business rates.”

We hope that this is a Budget that you can feel real benefits from. If you are interested to read more on small business issues then why not look at our dedicated blog page here.


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