Chancellor Gordon Brown has announced a pre-budget report which
contains taxation measures designed to encourage innovation and
benefit small businesses. The report details four tax cuts for
enterprise and other measures “to help British business,
particularly manufacturers, to invest in the technologies of the
future.”
The Chancellor plans to legislate for a new Research and
Development Tax Credit for large companies which he describes as “a
tax cut to boost innovation.” The Chancellor also plans to “reward
entrepreneurship” with a cut in capital gains tax to 20% for
business assets held for over one year and to 10% for assets held
for more than two.
The Chancellor hopes that the coming Budget will benefit the UK
at a time when the global economy is suffering. “While the British
economy has been stable, it can and must be stronger,” he said.
