Not anything you won't have seen elsewhere this, but thought we might as well summarise yesterday's budget, given that it is the first in a generation to make such drastic changes to both taxation and benefits regimes
Corporation Tax will be cut next year by 1% to 27%. Annual reductions will then be imposed until the rate reaches 24%.
The Small Companies tax rate will reduce to 20%.
On 4th January next year, the main rate of VAT will rise from 17.5 to 20% - bad news for shoppers and bad news too for those of us in service sectors who are obliged to charge VAT on our services.
More bad news for higher rate tax payers with capital assets - the rate of Capital Gains Tax rises by 10% to 28% as from midnight last night. Those with investment properties on the market at present will be amongst the first to suffer that hike.
To add to that particular misery, the annual exemption for CGT remains at £10,100.00 but will apparently continue to rise with inflation.
The personal income tax allowance will increase by £1,000.00 in April, taking the amount that you can earn before paying income tax up yo £7,475.00
However, higher rate taxpayers will not benefit from that change, and the higher rate income tax threshold will remain frozen to 2013-14.
Wednesday 23 June 2010
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