Firms uncertain over tax relief

Kasmira Jefford
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SMALL businesses faced further uncertainty after the government said it will review a planned cut in tax relief on capital investments, with a decision not expected until the Autumn Statement in December.

Industry groups has urged the chancellor to freeze the annual investment allowance at its current level of £500,000. The allowance for investments in machinery is due to fall to just £25,000 in January 2016.

Businesses are set to receive other forms of relief, with corporation tax set to fall to 20 per cent in April.