A little relief for business
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A SCHEME for tax relief for investment in small businesses has been agreed for presentation to Government by the Association of Independent Businesses.
The Al B's taxation committee identifies two specific economic weaknesses of our financial system, the first being that it is the price of finance in relation to expected profitability which is the major constraint on real investment. This has allegedly been caused by high and fluctuating inflation rates.
The second main problem area is in the provision of finance to smaller firms. After reiterating support for a loan guarantee scheme, the Wilson Committee's report recommends the encouragement of a new form of investment trust (small firms investment trust), the purchase of which shares by individuals should attract a tax relief.