Purbeck Personal Guarantee Insurance, the small business champion which protects business owners from the risks of personal guarantee backed business loans, has welcomed the permanent ‘full expensing’ in the Autumn Budget.
This means firms will get back 25p for every £1 they invest in the growth of their business. Purbeck also fully supports the extension to the reduction of business rates for the retail and hospitality sector, throwing a lifeline to many struggling small businesses in high streets across the U.K.
Todd Davison, MD of Purbeck Personal Guarantee Insurance said, “These measures are logical and necessary given the macroeconomic indicators have improved, with inflation moving back to target levels and the Monetary Policy Committee putting a stop to any further bank rate increases in recent months.
“These are the kind of robust policies we have called for to support business investment and provide assistance to sectors which are still facing strong headwinds.
“It is disappointing however that there has been no reversal of Section 24 giving landlords the ability to set the full amount of mortgage interest against rental income, before tax is calculated. This would have helped stop private landlords leaving the rental market which is pushing rental prices up for tenants.”
“A landlord operating in a limited company structure can offset 100% of the buy to let mortgage interest which has led to a huge rise in buy to let mortgages take in limited company structures and demand for personal guarantee insurance protection.
“But setting up a limited company isn’t always the best option and it’s frustrating that private landlords have been denied the break they need to breathe life back into the private rental market.”