Fashionista at (Tax) Law

March 19th, 2015

Fashionista was somewhat underwhelmed by yesterday’s Budget. Generous new reliefs for “creative industries” such as TV, film, theatre and even orchestras http://blogs.olswang.com/budgetblog/2015/03/19/further-boost-for-creative-industries/ but what about our highly creative fashion industry? Perhaps George should consult Mrs rather than Mr Cameron before planning his next Budget, if he’s still Chancellor after the election.

To be fair there were also announcements to help business generally, including confirmation of the reduction in corporation tax to 20% and a review of business rates which are crippling our high streets (but, note, no promise of major reductions any time soon). There has been some tinkering with the tax reliefs for investors in smaller unquoted trading companies, including the Enterprise Investment Scheme, to ensure that they do not constitute illegal state aid under EU law, but it appears that the new restrictions should not be too onerous and there is even an increase in the maximum amount which can be raised by “knowledge intensive” companies, (expected to be those creating new intellectual property, probably not fashion houses or designers but fingers crossed!). see our tax blog for further information http://blogs.olswang.com/budgetblog/2015/03/18/venture-capital-scheme-tinkering-is-the-government-still-supporting-enterprise/

Retail staff may get a pay rise with the 20p increase in the hourly minimum wage, the increase in the personal allowance to £10,600 and the abolition of class 1 NICs for under 21s. Every little helps.

On the other hand, life is likely to become more expensive for our UK based foreign designers, with the higher remittance basis charges for non-doms. See our blog http://blogs.olswang.com/budgetblog/2014/12/03/there-will-be-no-more-changes-to-the-non-dom-rules-in-this-parliament-unless-we-badly-need-some-votes/

By: Sarah Wright
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