| George Osborne presented
his first Budget on Tuesday 22 June 2010.
For the first time, forecasts were
published in advance of the Budget. The
Office for Budget Responsibility was
formed in May 2010 to make an independent
assessment of the public finances and the
economy in advance of each Budget and
Pre-Budget Report. Within the framework of
these forecasts George Osborne stated that
a tough but fair Budget was needed.
Many fundamental announcements have
been made which affect the taxation of
most individuals and these include:
- An increase in the personal
allowance of £1,000 from 6 April 2011
for those aged under 65 but higher rate
taxpayers will not benefit due to a
reduction in the basic rate band upper
limit.
- An increase in the rate of VAT to
20% from 4 January 2011.
- A new 28% rate of capital gains tax
for higher and additional rate
taxpayers.
- An increase in the maximum
Entrepreneurs’ Relief to £5 million from
£2 million.
- A scheme to reduce NI contributions
for new businesses in particular areas.
- Corporation tax rates to be reduced
and the system to be reformed.
- The Annual Investment Allowance for
capital allowances is to be reduced from
£100,000 to £25,000 and the annual
writing down allowances are to be
reduced from April 2012.
Link:
Treasury Website
|
