Easigrip supports pre-budget report
A SMALL Business has hailed the pre-budget report as a lifeline
for start-up companies.
In his pre-budget report speech, chancellor Gordon Brown explained
how the government intends to help British businesses and particularly
manufacturers to invest in the technologies of the future.
He aims to cut capital gains tax to twenty per cent for business
assets held for more than one year and ten per cent for business
assets held for two.
The reduction means that Britain will have a capital gains tax
regime, which is more favourable than that of the United States.
This has been welcomed by Warwickshire-based Easigrip Ltd
manufacturers of elasticated tubular bandage.
Paul Sweeney, joint managing director of Easigrip Ltd, said: The
reduction of capital gains tax for businesses is a fantastic boost
for small companies like us. Previously the tax bill for selling
a successful business was very high.
I believe the reduction in capital gains tax will support
new entrepreneurs nation-wide helping to encourage investment.
Easigrip Ltd has had success distributing its alternative brand
of bandage in six overseas countries and Mr Sweeney believes that
there is now no better time to start-up a small business.
He added: With countries including America, Japan and Asian
economies in recession, Mr Browns speech is good news for
smaller businesses. There is tremendous support from organisations
such as Business Link and despite the pounds strength against
foreign currency, overseas sales are still encouraging.
Britains interest rates are the lowest for nearly 40 years
so the economy will favour new start-ups. However, Mr Sweeney
still sees room for improvement.
I would like to have seen an extension of the current five
year deferred tax payments for investors under the Enterprise
Investment Scheme in Mr Browns report. I feel deferring
the tax bill to ten years would encourage more investment,
said Mr Sweeney.
1. Easigrip Ltd. exports to six overseas countries and is one
of the largest suppliers of tubular bandage in Belgium.
2. Easigrip found support through Trade Partners UK Business
Link which is a division of the DTI.
3. Easigrip was marketed at the Medica 99 tradeshow in Germany.