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Autumn Statement - 29 November 2011 - Click here for a summary

In his 2011 Autumn Statement the Chancellor announced a number of measures that will impact businesses and taxpayers in the South-West.

Seed Enterprise Investment Scheme (SEIS)

The SEIS will provide income tax relief of 50% for individuals who invest in shares in qualifying companies.  There will be an annual investment limit for individuals of £100,000 and a cumulative investment limit for companies of £150,000.

As a further incentive there will be a capital gains tax (CGT) exemption on gains realized on disposals of assets in 2012/13 and invested through the SEIS in that same year.

CGT exempt amount

The CGT annual exempt amount will be frozen at £10,600 for 2012/13 and thus further restrict taxpayers' protection against the inflation element of realized gains.

Asset backed pension contributions

Contrary to press speculation no measures have been announced with respect to higher rate tax relief on pension contributions or taxing lump sums.  A targeted anti-avoidance measure against employer asset-backed pension contributions will, however, take immediate effect.

 Small business rate relief holiday

The Government will extend the small business rate relief holiday for a further 6 months from 1 October 2012.

 Business rate deferral scheme

The Government will give businesses the opportunity to defer 60% of the increase in their 2012/13 business rate bills as a result of the RPI uprating, to be repaid equally across the following two years.

 Fuel duty

The 3.02p fuel duty increase due in January 2012 will be deferred to August 2012 and the increase planned for August will be cancelled.

Gifts of pre-eminent objects

Individuals will be able to receive a reduction in their income tax or CGT liabilities, and companies will be able to receive a reduction in their corporation tax liabilities, in return for donating pre-eminent objects (to be defined) to the state.  There will be annual limit of £30million on the tax offsets provided under this scheme.

National Loan Guarantee Scheme

The Government will create a £20billion loan guarantee scheme.  The scheme will take the form of bank guarantees that are intended to lower the cost of borrowing for small businesses.  This proposal is subject to EU state aid approval.

Business Finance Partnership

The Government will make available an initial £1billion, through a Business Finance Partnership, to invest in SMEs in the UK through non-bank lending channels.  The fund will initially focus on co-investment with the private sector through loan funds that lend directly to small and mid-sized businesses.

Export assistance

The Government is to provide £45 million of support to UK firms wishing to export, doubling from 25,000 to 50,000 the number of SMEs supported, and making similar support available to 500 mid-sized businesses.

If you would like any information about the measures announced in the 2011 Autumn Statement or would like to discuss their application to your own circumstances please contact your usual Thomas Westcott adviser.