Wednesday 21 March 2012
Whilst there were some measures in today’s Budget to boost entrepreneurial activity, the Chancellor’s announcement on interest relief will come as a blow for some UK entrepreneurs, according to David Kilshaw, tax partner at KPMG.
David said: “Until today, an entrepreneur who set up a trading company could borrow to fund the money he put into the business and set the interest payments against his tax bill. This encouraged taxpayers to take risk, fund growth and employ people.
“Although we await the small print, it seems the interest relief is to be capped at the higher of £50,000 and 25% of their income.”
“This measure discourages those looking to borrow to build. Far from encouraging risk takers, it could put a cap on entrepreneurial adventure. ‘’
Follow us on twitter: @kpmg_uk_llp #budget2012
For further information please contact:
KPMG Press office
Tel: +44 (0) 207 694 8773
Mark Hamilton, KPMG Corporate Communications
Mobile: 07785 337672
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.