Given the continued drive for job creation and the fundamental need to support small business should the government not re-examine the decision to abolish interest deductions on pre-7 Dec 2010 borrowings to invest capital in start up trading companies.
The recent changes have the potential to impact on the viability and staffing levels of companys already facing tremendous strain. This is not a tax relief that waswas fuelled by property speculation and the savings generated from the changes are relatively inconsequential to the exchequer whilst the impact on the individual and the trading business is profound.
Of additional concern is the impact these changes will have on the companys capacity and ability to service the debt borrowed to fund the original investment, maintaining the borrowings within “performing limits” and preventing the lender from having to provide against potential default.
The recent changes have the potential to impact on the viability and staffing levels of companys already facing tremendous strain. This is not a tax relief that waswas fuelled by property speculation and the savings generated from the changes are relatively inconsequential to the exchequer whilst the impact on the individual and the trading business is profound.
Of additional concern is the impact these changes will have on the companys capacity and ability to service the debt borrowed to fund the original investment, maintaining the borrowings within “performing limits” and preventing the lender from having to provide against potential default.