Welcome to Beer & Partners Investor Site

Lord Sugar has received quite a lot of flack in the press after suggesting that small businesses should not expect a blank cheque simply for coming up with a good idea and that some firms would not succeed even in the best of times. I accept that calling them moaners who live in Disney World may not have the right ring from a Government stance supposedly encouraging new businesses but it does illustrate the number of businesses who have seen the EFG loan scheme as an expectation of funding and been surprised when turned down. Government and banks cannot provide funding to anyone who simply think that they have a good idea.

Business angels know that not all businesses will work and that there will be unforeseen pitfalls and sudden changes in economic conditions. They are however adept at recognising realistic propositions and adding value of experience to that minority of companies that have the potential to succeed.

The pre budget report contained a few positives for small businesses and investors - deferment of the increase in small companies corporation tax, a 10% rate of corporation tax for profits from patents, and no increase in Capital Gains Tax. The increase to NI will almost certainly cancel out much of this however for many firms.

There can be no doubt now that the 50% income tax rate is going to become a reality - whichever political party is in power after the General Election in the Spring - and it seems likely that the rate will remain for some years at least. Astonishingly, no one in the Treasury seems to have thought of the sound bite that EIS relief will now be more attractive with the risk of any losses reduced to 40% of investment for top rate tax payers.

We wish you all a very Happy Christmas and above all a Prosperous New Year.

Mike Weaver, Beer & Partners Limited