Press Releases
30 November 2011
Comments on the Government’s autumn announcement
National Loan Guarantee Scheme for small businesses needs to provide long term lending
- Enterprise Zone capital allowance welcomed
Comments on the confirmation of plans for a £20billion National Guarantee Scheme to support small business loans from Wilkins Kennedy, the UK’s Top 21 accountancy.
Under the scheme banks should pass on the lower cost of funding, provided by the Government’s guarantee, to the SMEs that they lend to.
Says Roger Williams, Partner at Wilkins Kennedy: “To make the scheme a real success the Government should look at the all the terms that the banks lend on under this scheme – not just the headline interest rate.”
“Small businesses will be nervous to take up loans from banks if they think that the loan can be pulled away too easily. So the Government may need to monitor the length of the term under which the loans are granted.”
Capital Allowances for companies in Enterprise Zones will be increased to 100% in the first year. This is significantly more generous than the existing 18% main rate capital allowances.
Comments Roger Williams: “Increasing the capital allowances from 18% to 100% in the first year of a company located in an Enterprise Zone should make it substantially more attractive to invest in that area. This should attract more inward investment from overseas into these Enterprise Zones.”
“There is a risk that the areas immediately around Enterprise Zones will suffer as investment will be diverted into the Enterprise Zones.”
The new Seed Enterprise Investment Scheme 2012 will give an income tax relief rate of 50% to investments of a maximum of £150k in start-ups whose total assets, before investment, are below £200k. In addition, there is a one year exemption from capital gains tax (CGT) where gains realised in 2012-13 are invested through SEIS in the same tax year.
Comments from Roger Williams: “The introduction of the Seed Enterprise Investment Scheme and the changes to the Enterprise Investment Scheme and Venture Capital Scheme have the potential to really boost the development of UK start-ups.”
ENDS
Press Contacts:
Roger Williams
Partner
Wilkins Kennedy
Tel: 01784 435561
Fay Israsena or Nick Mattison
Mattison Public Relations
Tel: 020 7645 3636
