The British Venture Capital Association has enthusiastically welcomed the UK government's latest package of measures designed to promote enterprise. It singled out Chancellor of the Exchequer Gordon Brown's proposals to extend the taper on capital gains tax relief, more generous share options allowances, and bigger tax breaks on research and development.
‘I welcome much of what the Chancellor had to say this afternoon. In particular, I welcome the initiatives on research and development, the capital gains tax cuts, VAT simplification, and the share options scheme expansion. They are all welcome assistance in what is a difficult economic environment,’ John Mackie, chief executive of the BVCA said.
Brown delivered his annual pre-budget report on Tuesday, which outlines legislative proposals ahead of the spring budget the following year, and announced a package of measures specifically designed to promote enterprise and innovation.
The most striking feature for the venture capital community was some new steps on CGT, including improvements to the business assets taper relief for disposals ‘to enhance the competitiveness of the UK regime’.
There was also an outline for a ‘new regime for providing relief to companies for the costs of intellectual property, goodwill and other intangible assets to encourage businesses to take advantage of new opportunities in the emerging knowledge-based economy’.
The new measures are likely to be introduced from April 2002.
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