‘Radical changes to the tax regime for medium-sized businesses are being studied by the Treasury following calls for an overhaul from consultants and a number of leading companies and advisers in the sector.
‘David Gauke, Exchequer Secretary to the Treasury, has agreed to review a series of proposals submitted by business consultants BDO after extensive discussions with mid-sized companies. They feel sidelined in the tax debate with its emphasis on corporation tax and say not enough was done for them in the Chancellor’s Autumn Statement.
‘This was despite a commitment from the Government to provide more support to mid-sized businesses, which George Osborne called the “engine room of the British economy”. Two key proposals designed to simplify taxation of their businesses and shareholders by replacing the current set-up with a single layer and align tax treatment with commercial reality have been submitted to the Treasury.
‘One involves giving medium-sized companies the opportunity to elect to be taxed as if they were partnerships or sole proprietors to produce a single tax level for business profits. The second would extend the real estate investment trust regime to include all privately owned businesses, freeing them of corporation tax but paying taxable dividends to shareholders.’
‘Radical changes to the tax regime for medium-sized businesses are being studied by the Treasury following calls for an overhaul from consultants and a number of leading companies and advisers in the sector.
‘David Gauke, Exchequer Secretary to the Treasury, has agreed to review a series of proposals submitted by business consultants BDO after extensive discussions with mid-sized companies. They feel sidelined in the tax debate with its emphasis on corporation tax and say not enough was done for them in the Chancellor’s Autumn Statement.
‘This was despite a commitment from the Government to provide more support to mid-sized businesses, which George Osborne called the “engine room of the British economy”. Two key proposals designed to simplify taxation of their businesses and shareholders by replacing the current set-up with a single layer and align tax treatment with commercial reality have been submitted to the Treasury.
‘One involves giving medium-sized companies the opportunity to elect to be taxed as if they were partnerships or sole proprietors to produce a single tax level for business profits. The second would extend the real estate investment trust regime to include all privately owned businesses, freeing them of corporation tax but paying taxable dividends to shareholders.’
