Small firms and business start-ups will be spared any new red tape for the next three years and benefit from a bonfire of existing regulations.
Until April 2014, the government is banning the introduction of any Westminster-inspired laws for start-up businesses or firms with fewer than ten employees.
Ministers want to help small firms hire, rather than fire, at a time when thousands of former public sector workers are entering the jobs market.
The Chancellor also revealed a large tax cut for entrepreneurs who sell companies or stakes in their own firms for a large sum.
At present, they pay Capital Gains Tax at 10% – rather than the standard 28% – on the first £5m of their gain.
From 6 April, this so- called ‘Entrepreneurs’ relief’ will be doubled to £10m.
To qualify, the entrepreneur must own at least 5% of the business, have owned the shares for a minimum of a year and work for the firm.
It is calculated that this is equal to a tax saving of £900,000 for an entrepreneur who makes the maximum gain of £10m.
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By Kerry Davies
