|
There was very little to write home about in this year's Budget. What there was may never be enacted in law unless the current government is returned to power after the election (and the new Chancellor decides to stick with the existing plan). The following information is therefore tentative at best but it is the best we've got!
Income tax
Main personal tax rates and allowances remain at the same levels as 2009/10 apart from the introduction of the 50% rate for income over £150,000 and the gradual withdrawal of the personal allowance for those earning over £100,000 at the rate of £1 of allowance for every £2 of income. This results in a marginal tax rate of 60% for income between £100,000 and £112,950.
Other personal taxes
The rate of capital gains tax is unchanged at 18% although the amount of gains potentially subject to entrepreneurial relief doubles from £1m to £2m. The nil rate band for inheritance tax stays at £325,000 until at least 2014/15.
Capital allowances
The 40% first year allowance has now ended but the annual investment allowance has been increased from £50,000 to £100,000 per annum. Acquisitions in excess of the AIA qualify for writing down allowance of 10% or 20%.
Corporation tax
The small companies rate remains at 21% for 2010/11 but is still due to increase by 1% in April next year. The main rate stays at 28% until April 2012 at least.
VAT
Registration for VAT is now required at a turnover of £70,000. The rates are unaltered at the moment.
Other matters
First time buyers do not pay stamp duty on house purchases unless the price exceeds £250,000. From next year a higher rate of 5% will be chargeable on property selling for £1m or over. Alcohol and tobacco duties have been increased but the increase in fuel duty is to be phased in over the coming year starting with a 1p increase on 1 April (isn't that appropriate!).
|
|
