Blick Rothenberg

Following today's autumn statement, Toby Ryland partner in the Corporate Tax department said that “the announcement of a seed enterprise investment scheme is just reward for individual private investors”. He added, “This could provide up-front tax relief totalling 78% for investments made during the year to 5th April 2013. Although there is a £100k cap, private investors will welcome the £50k income tax reduction and may look to invest in a scheme as an alternative to traditional pensions for one year only.”

Talking about the reductions in Capital Allowance rates, partner Mike Scoltock in the Corporate department said, “The Chancellor has missed a trick by not reversing previously announced reductions that will take effect from April 2012”. He added, “With great emphasis on the announcement of 500 infrastructure projects to drive growth, it would have been good to have seen an incentive for the suppliers of these projects to invest in the necessary capital plant to meet supply.”

The OBR forecast of receipts shows that the Government expects 35% increase in national insurance contributions. Angela Beech, partner in the private client department added "national insurance netted the Government £97.7bn and this is forecast to rise to £124bn by 2016. It just goes to show that national insurance clearly plays a major role in Government finances rather than focusing on its original route, being provision of state benefit."