Tim Parr, chairman of Keighley Business Forum, says the further reduction in Corporation Tax rates to 20 per cent for most businesses and 30 per cent for the biggest companies gives a very low rate of taxation.

Every business should seek to take advantage of these low tax rates. People operating as partnerships or sole traders may be able to halve their tax bills by taking advantage.

Dramatic changes were also announced to the taxation of Capital Gains. Over the next few years we will see retirement relief replaced by a similar relief, which will have the advantage of the taxpayer not having to be over 50 to qualify.

Some swingeing changes have also been announced to the taxation of offshore trusts. Anyone with an offshore trust will need to thoroughly review their position.

Changes to the taxation and benefits system for low income families should have the welcome effect of helping them keep more of what they earn, and should also increase the supply of staff for employers who, despite significant unemployment, are increasingly encountering staff shortages.

Despite persistent scare stories, the new Government does seem to be very pro-business, and the environment for enterprise has never been better.

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