§ 43. Mr. Peter Millsasked the Secretary of State for Industry what further action has been taken by the Government to assist small businesses in the South-West in their difficulties following the recent letter to the Prime Minister on 28th February 1978 and the deputation to the Secretary of State for the Environment.
§ Mr. CryerThe following measures of particular benefit to small businesses in all regions of the United Kingdom including the South-West were announced in the Chancellor's Budget Statement on 11th April 1978:
Income Tax
A new relief is to be introduced enabling the proprietor of an unincorporated business to carry back a trading loss sustained in the first tax year in which he trades or in any of the next three years and to set it against income of the previous three years.Capital Gains Tax
357WReliefs are to be introduced—raising the retirement relief from £20,000 to £50,000; deferring tax on a gift of business assets until they are sold; and enabling losses on loans and guarantee payments to be set against capital gains of the same or a later year.Corporation Tax
The ceiling for the reduced tax is to be raised from £40,000 to £50,000 and the limit for marginal relief from £50,000 to £85,000.Stock relief
The present scheme is to be continued indefinitely. Subject to progress made in the meantime towards a permanent scheme, legislation will be introduced next year to limit the build up of deferred liabilities.VAT
The registration limit is to be raised from £7,500 to £10,000 and relief given on bad debts where the debtor becomes formally insolvent.A decision was announced on 15th March to extend the small firms employment subsidy, from 1st July, to all manufacturing establishments with up to 200 employees within the assisted areas and in inner city partnership areas.