ACCA (the Association of Chartered Certified Accountants) warns that UK businesses - especially small- to medium-sized enterprises (SMEs) - will be hit by plans outlined in the Inland Revenue's plans for company tax reform.
Chas Roy-Chowdhury, ACCA head of taxation, said: "The Revenue is proposing to move to an accounting basis for taxing gains or losses on capital assets. This will mean that businesses will have to keep a large amount of needless information to keep track of accounting gains and losses on properties until they are actually sold. And the Revenue is also thinking of scrapping the indexation allowance, on the taxation of capital assets. This is worth a lot to small businesses in an era of low inflation, and losing it will be a blow to them."
