Treasury set to announce tax breaks for small businesses

Date: 26th September 2011

The Treasury is set to announce that angel investors in small businesses will benefit from a £100 million tax break to support growing firms.

Recently, the government received the backing of Brussels to increase the rate of tax relief available from 20 per cent to 30 per cent. It is also set to double the annual investor limit to £1 million.

The ambition of the Treasury is to encourage investment in some of the UK's smaller firms, thereby helping to stimulate wider economic prosperity.

Indeed, the announcement recognises the fact that angel investors support high growth firms.

"We want to make the UK the best place to start, finance and grow a business," explained George Osborne, chancellor of the exchequer.

"These changes will give a bigger tax break to those who take risks for growth and jobs in Britain by investing in the small businesses that have the potential to be fast growing."

Posted by Thomas Fletcher