Cautious welcome for 2011 budget from business accountant.

A business accountant has cautiously welcomed tax cuts for businesses outlined in the latest budget, which the chancellor George Osborne said will help kick-start the UK economy. Peter Lashmar, who writes his own tax newsletter through his accountancy firm in Lymington, Hampshire, said he hoped the initiatives would lead to new and steady growth soon. “As a business accountant it is very unfortunate when you see clients losing their livelihoods because of the poor performance by the UK economy.” He said. “The state of my business acts as a fairly accurate barometer for the level of growth in the UK, so we’re keeping our fingers crossed.” He added. Business accountants watched closely as the chancellor announced he was slashing rates of corporation tax by a whole five per cent over three years, with the small profits rate reduced to twenty per cent.  Capital gains tax changes will see the annual exemption amount increasing to £10,600 from 2011. In addition, the lifetime limit on gains qualifying for entrepreneurs’ relief will double to ten million pounds from 2011 as well. The chancellor delivered his budget for 2011 in the House of Commons in March to a mixed response from MPs. Labour frontbenchers challenged Mr. Osborne over the disappointing growth figures, which saw the UK slip back into negative growth ratings in the final quarter of last year. However, he claimed that his measures to stimulate growth would put fuel in the tank of the British economy, a recurring theme in a budget, which culminated in him cutting the price of petrol by a penny per litre.  “Only time will tell whether these changes boost growth in the economy by making it easier to set up and run a business.” Peter Lashmar said. “As business accountants we definitely hope that this will be the case.” He added.   

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