United Kingdom, reducing taxes on business

Since April 1 entered into force a number of tax reforms “that will support millions of businesses to create more jobs and to enhance their duties,” said David Gauke, Financial Secretary of the Treasury.

In a statement, the government said: “The changes will help entrepreneurs and businesses create new jobs, it will include measures that will help to reduce labor costs, taking the very smallest businesses out of employer National Insurance contributions (NICs). Will be extending business rates relief ahead of permanent major rates cuts.

The following measures have come into force:

• The Small Business Relief Scheme will be extended for another year, in anticipation of the introduction of business rates cuts in April 2017;
• NICs will be abolished for apprentices under the age of 25 years;
• The employment allowance for businesses and charitable organizations, will be increased from 2000 GBP to 3000 pounds, to encourage the hiring of staff;
• Capital gains tax will be reduced from 28 to 20 percent;
• The duty on fuel will be frozen for the sixth consecutive year.

“The companies are the lifeblood of the economy, so we try to provide them with financial support as the enterprise and innovation will provide growth and opportunities for the next generation,” said Gauke.