Enterprising budget?

A FEW STEPS forward were taken by the Chancellor in the 2006 Budget to help enterprise in the UK. These steps relate to research and development red tape and the possible alignment of tax and National Insurance. However progress was less apparent in the fields of business investment corporation and inheritance tax skills and start-ups.
Let's begin with the positive measures.

R&D tax credit

The expansion of the research and development tax credit system follows recent announcements by the Government about proposed improvements to the claims procedure. This is arguably a key move as many companies find claiming the relief too complex and give up.
At present small and medium sized enterprises can claim an enhanced deduction of 150% for qualifying research and development expenditure and if a tax loss arises this can be surrendered for cash at the rate of £24 for...