9:00am Thursday 11th March 2010
By Tim Saunders
Firms argue for reduced levies as Budget looms THE Budget is two weeks away and Dorset firms want tax cuts to further stimulate spending.
They say reduced levies would ultimately generate the government more money and rescue the UK from the aftermath of recession.
“A Budget that created some sort of feelgood factor would be welcome but budgets aren’t good at coming up with that,” said David Skillicorn, managing director of Palmair, the Bournemouth holiday provider.
“Top of my wish list is to get rid of air passenger duty. This is a tax levied on every UK departing passenger by air.”
He said it was £11 up to so many nautical miles – “and then a higher air passenger duty applies. If you’re in business or first class you pay more.
“I also want a reduction in income tax,” said Mr Skillicorn, who anticipates that the people Palmair is “trying to persuade to book holidays will be the ones belted in the pockets”.
“Clearer rules on residence” are being sought by Julian Smith, private client tax partner at Princecroft Willis in Poole.
“Guidance from the Revenue (HM Revenue & Customs) is inconclusive and courts cannot make their minds up,” he said. “It’s in the Revenue’s interest to keep them woolly.
“People working abroad won’t pay tax on overseas earnings if they’re not resident in the UK but, if for whatever reason, they are resident in the UK, then they’ll pay tax.”
He would welcome no stamp duty on properties up to £175,000, together with a halving of the one per cent stamp duty paid on properties valued between £125,000 and £250,000.
To further aid the fragile recovery, full tax relief ought to be increased from £50,000 to £100,000 for plant and machinery “on a temporary basis” he says.
Dominant European legislation should be tackled, according to Rollo Reid, technical director of John Reid & Sons (Strucsteel) Ltd in Christchurch.
He says there’s a conflict between British and European standards relating to steel construction, which is hindering the progress of his business.
“My plea would be not to eliminate Euro codes but promote British standards for construction,” said Mr Reid.
“They should be allowed to exist in perpetuity alongside any other European codes.”
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