While George Osborne made a case for growth, his proposals present both opportunities and challenges to SMEs. The headline is a reduction in the main rate of corporation tax. Changes are made to the rules on Enterprise Management Incentives (EMI), Enterprise Investment Scheme (EIS), Venture Capital Trusts (VCTs) and company cars. In addition, new measures include a Seed Enterprise Investment Scheme (SEIS), an above-the-line incentive for R&D, and a low tax Patent Box regime, whilst IR35 and the taxation of personal service companies are also to be reviewed.
