Emergency Budget 23/06/2010
The Chancellor, George Osborne, presented the first budget of the new coalition Government to the House of Commons on Tuesday 22 June.
Among the changes announced were the following:-
Measures taking effect immediately and in the short term
- Capital gains tax rises from 18% to 28% for higher rate tax payers.
- 10% Entrepreneur relief lifetime limit rises to £5m.
- Employer national insurance relief for new businesses employing people.
- VAT increases to 20% from 4 January 2011.
Measures taking effect from April 2011
- Corporation tax reduces to 20% for small companies and to 27% for larger companies. Further reductions to 24% for larger companies over the following 3 years
- Employer National Insurance threshold rise by £1,092 pa to offset increase in employer national insurance rates
- Personal tax allowances rise by £1,000 to £7,475 – basic rate tax payers only
- Higher rate tax threshold frozen until 2013.
Measures taking effect from April 2012
- Capital allowance rates reduced to 18% from 20%
- 100% Annual Investment Allowance reduced to £25,000.
These notes are summary points only and are subject to change and interpretation. Please consult us on the detail before taking any action.