Budget statement on 17 March 2004: A Summary of the Small Business Announcements

Building the Capability for Small Business Growth

Improving the growth capability of UK businesses will only be achieved by raising performance across a range of areas such as management skills, workforce development, use of innovation and adoption of best practice across different business functions. The Budget announced the following further steps:

• The first year capital allowances available to small businesses investing in plant and machinery will be increased to 50% for expenditure in the year from April 2004. Having considered a range of proposals for reform of the tax treatment of capital investment, the government has concluded against alignment with accounts depreciation.
  
  
• Improvements to the R&D tax credits scheme were announced in the 2003 Pre-Budget Report. The Inland Revenue will produce new guidance in support of the R&D tax credit in advance of the 2004 Pre-Budget Report. It will also embark upon a programme to improve delivery of the credit so that companies get the most benefit from the reliefs and funds available.
  
  
• Martin Wyn Griffith, the Chief Executive of the Small Business Service, will lead a cross-departmental review of the hurdles that businesses face when their ownership changes, and what more could be done to ease the process.

This document is based on Crown Copyright © 2004