Coalition outlines plans to slash red tape and review business taxation

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Coalition outlines plans to slash red tape and review business taxation

Posted May 20, 2010

The new government has unveiled a more detailed 34-page outline of its new "programme for government" which can be downloaded here (PDF).

Although light on detail, as might be expected in advance of the June 22nd budget, the document highlights a new approach to investment, business, and tax.

Some of the key proposals which will be of particular interest to small businesses and contractors include:

Banking reforms to include a banking levy, ensure the flow of credit to SMEs via a new major loan guarantee scheme.

Plans to cut red tape via the introduction of a 'one-in, one-out' rule whereby no new regulation is brought in without other regulation being cut by a greater amount.

It will become even easier and faster to set up a limited company via a 'one click' registration model.

A review of IR35 as part of an overhaul of small business taxation.

Find a practical way to make small business rate relief automatic.

Complete reform of the corporation tax system (full details will surely follow at the emergency budget).

Aspiration for 25% of government contracts to be awarded to SMEs.

Aspiration for the UK to become the leading hi-tech exporter in Europe.

End the 'gold plating' of EU rules, so UK businesses are not disadvantaged compared to their EU competitors.

Increase the personal allowance in stages from April 2011 to benefit lower income families in particular.

CGT on non-business assets likely to be aligned to income tax bands.

There will be generous exemptions to the CGT rules for entrepreneurial business activities.

The controversial 'non dom' taxation rules for individuals will be reviewed.

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