A breakdown of the key personal tax measures in today's Emergency Budget report. Keep your eyes on this page as we'll be updating it throughout the day.
Capital gains tax
- Higher rate tax payers will pay 28% from midnight on 22 June 2010
- Low and mid-income savers will continue to pay 18%
- CGT for entrepreneurs will be extended to the first £5m of lifetime gains
- The annual exempt amount for capital gains tax will remain at £10,100 for 2010-11
National insurance
- National insurance rates for employees will increase by 1% in April 2011
- Employers' NIC will increase by £21 a week above indexation
Personal allowances
- Personal allowance for under 65s will be increased to £7,475 from April 2011, worth £170 to basic rate taxpayers (lower than the £10,000 predicted)
- The basic rate limit will be reduced by £2,500 and the higher rate threshold by £1,650. The national insurance upper earnings/profit limit will also be reduced to keep it in line with the income tax higher rate threshold
Income tax
- The basic rate limit for income tax will be frozen in 2013-14 to help fund increases in personal allowance
Pensions
- State pension to be relinked with earnings from April 2011
- Basic state pension to go up every year by highest of earnings, inflation or 2.5%
- The government will accelerate the increase in state pension age to 66
Non-doms
- The government has pledged to review the tax conditions for non-domiciled individuals
Benefits and tax credits
- Child benefits will be frozen for the next three years
- Tax credits for families with income over £40,000 will be reduced from April 2011, with further changes planned for 2012-13
- Lone parents whose youngest child is over five will be moved onto Jobseekers Allowance rather than receiving Income Support from 2011-12 to help them move back into work
- There will be a shake-up of Housing Benefits from April 2011 onwards, which will include capping the maximum amount payable at £400 a week and restricting availability for those who can be expected to look for work
- Those claiming Disability Living Allowance will have to undergo a medical assessment from 2013
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