Small Businesses And Older Savers Could Benefit From The 2014 Budget, Says Law Experts

The forthcoming Budget offers George Osborne a chance to boost High Street businesses and give older savers a helping hand too, say experts from North West law firm Kirwans.

The Chancellor’s announcement on Wednesday (19th March) will be studied in particular by SME business owners, desperate for good news after a torrid few years, says commercial property solicitor Lisa Evans.

“Many parts of the country are suffering the ‘double whammy’ of unfairly high business rates that have forced firms to quit the High Street, while up-and-coming businesses are being put off joining the High Street,” she said.

“The government knows it must review business rates and I’m hoping that Mr Osborne will have some good news along these lines to back up his statement last autumn that ‘Britain is open for business.’

“The business rates system is outdated and flawed because current rates are linked to property valuations calculated in 2008 at the peak of the property boom.

“Many businesses in town centres and cities in the North West are paying artificially high taxes.

“Over the short term a revaluation of business properties could inject millions of pounds into areas outside of London and help restore some fairness. In the longer term a new, equitable system is required whether it is linked to property values or not.

“At the very least I hope there will be specific and much-needed help in the Budget for SMEs and start-up businesses.”

Meanwhile, John-Paul Dennis, Head of Private Client at Kirwans, is hoping that Mr Osborne provides tax relief for savers.

He said: “Older people are increasingly looking at legitimate ways of reducing how much of their hard-earned cash the taxman pockets after their death through inheritance tax, by offloading assets through gifts. Doing so also helps out cash-strapped younger relatives, loved ones or charities.

“The annual gift exemption levels have been static for some years now, so the Government may consider a review to at least bring the limits into line with inflation. It’s always prudent to review your personal situation immediately after a Budget to maximise the benefits of changes.”

Cash gifts of up to £3,000 per year or a wedding gift of up to £5,000 to a child are currently allowed to reduce inheritance tax paid on your estate.

John-Paul Dennis added: “The inheritance tax threshold has been fixed at £325,000 since 2009 so an upward review is also arguably overdue. It would be popular with the public generally to increase it but the

Chancellor is clearly reluctant.”

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