Plans outlined in chancellor George Osborne's Budget to increase the Entrepreneurs Relief threshold have been positively received by one organisation, which may interest UK contractors.
The Federation of Small Businesses (FSB) has given its backing to Mr Osborne's announcement that the threshold will go up from £2 million to £5 million.
Meanwhile, the body has welcomed the fact that the existing Enterprise Finance Guarantee scheme is set to be extended further by the coalition government.
Nevertheless, FSB national chairman John Walker has pointed out some of the issues that his organisation is not quite as enthusiastic about.
He stated: "The increase in VAT to 20 per cent will however, hurt small firms who will have to pass the increase on to their customers, unlike big business which can absorb the cost."
The chancellor announced his proposals on Tuesday (June 22nd), with the government aiming to address the country's budget deficit in a manner which is "tough but fair".
Posted by Fiona Beck.