Tax cut is an empty gesture for small firms

The crane picking up the Mary Rose.  Picture by Christopher Dobbs

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ALMOST every business in Hampshire will be no better off under new corporation tax rules.

Independent accountancy firm HWB says of the more than 62,000 businesses in the county, only 429 will save anything.

The firm says the new 23 per cent rate of corporation tax, announced by Chancellor George Osborne last month, will only benefit companies that post profits of £1.5m and above. That means only seven in every 1,000 Hampshire companies will be in a line for a reduction in their tax bill as a result of the corporation tax cut.

Tracy Jenkins, tax director for HWB, said: ‘We would have liked to see the rate of tax smaller companies pay cut.

‘We welcome any moves from the Government to help businesses in these tough economic times but small companies are the lifeblood of our economy and it’s there that the help should be directed.’