Scottish businesses 'may get quicker tax relief'

Date: 22nd January 2008

Measures to provide small firms in Scotland with some tax relief could come into force sooner than expected, it has emerged.

According to Scotland on Sunday, the Scottish government may decide to fast-track certain tax reforms in order to cope with the economic slowdown currently impacting on businesses across the UK.

The newspaper states that the SNP is coming under increasing pressure to bring forward its plans to save tax payments for small companies to the tune of £150 million. Under the current proposals, the full effects of this relief would not be seen until 2011.

"An accelerated relief plan could see the relief scheduled for year three telescoped into year two," the publication explains.

"Small businesses would welcome more help now when conditions are toughening by the week."

The country's smaller firms currently pay 13.7 per cent of their outgoings in business rates, compared with just three per cent for large businesses.

David Graeme, chief executive of Local Investment Networking Company Scotland, recently said that the proposed changes to capital gains tax could have a negative effect on business start-ups north of the border.

TaxAssist Accountants focus their accountancy and tax skills specifically on small businesses and taxpayers in the UK.