In response to the Conservative party's announcements on business rates and corporation tax, Zoe Thomas, Partner, Business Tax Services at Smith & Williamson said:
“The UK’s business rates system is broken and any new government must undertake an urgent review to find alternatives. The current system has placed an unfair burden on bricks-and-mortar shops and manufacturers compared with businesses that operate online.
“Reforming business rates should be a top priority for the UK government and today’s pledge by Boris Johnson is a step in the right direction to enable economic growth and reduce the burden on UK businesses. As part of this review, any new government should reduce business rates to save the high street.
“The overall package of tax reforms are positive, despite the announcement to postpone planned cuts to corporation tax. The delay may come as a shock to businesses, as they look to the government for stability and consistency during these times of uncertainty. Many businesses will have factored these planned reductions into their Budgets and forecasts from April 2020 onwards. The Conservatives now need to quickly announce when the reduction will take place so that UK businesses can plan ahead.”
Notes to editors
Smith & Williamson is a leading financial and professional services firm providing a comprehensive range of investment management, tax, financial advisory and accountancy services to private clients and their business interests. The firm’s c1,800 people operate from a network of 11 offices: London, Belfast, Birmingham, Bristol, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. Smith & Williamson is part of The Tilney Smith & Williamson Group.
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By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.