Chancellor of the Exchequer Alistair Darling today announced help for cash-strapped small businesses in his 2009 Budget
Helping cashflow for business through loss carryback
Loss-making small businesses will be able to reclaim tax paid in the previous 3 years, rather than carrying excess losses forward for offset against future profits.
This measure will be available until November 2010 and will help traders suffering from cashflow problems during the recession.
Capital allowances increased to 40%
To encourage spending on buildings and equipment, the rate of capital allowances available to businesses will be increased temporarily from 20% to 40%.
This move will allow a higher proportion of private investment to be offset in that year against taxable profits, encouraging businesses to bring forward planned investment.
The increased capital allowances are only available for one year, with effect from April 2009.
Personal budget calculator
To see what effect the Budget will have on your own finances, try out our Budget 2009 calculator.
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