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Emergency Budget 2010 at-a-glance

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22nd Jun 2010
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SMALL BUSINESS TAXATION

PERSONAL TAXATION

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

Personal allowances

  • Personal allowance will be increased to £7,475 from April 2011, worth £170 to basic rate taxpayers (lower than the £10,000 predicted)

Pensions

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
  • Related articlesTax credits - how it bites

TAX POLICY

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Replies (6)

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Glen Feechan
By Glen Feechan
23rd Jun 2010 10:00

It could have been a lot worse

Overall I don't think the budget went too badly, considering how it was billed. We all knew there were going to be some massive spending cuts and tax rises and they seem to have been targeted reasonably sensibly, while protecting business and the poor as much as possible.

It'll all seem a lot brighter if England win tonight!

 

-- Glen John Feechan BA Hon. ACA

[email protected]

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By charleslaneco
23rd Jun 2010 10:33

Excellent

My opinion is that the Chancellor has delivered a much needed and long overdue realistic Budget. It clearly highlighted that private industry together with Government Infrastructure projects create a prosperous economy whilst tackling the bulging burden of state hand-outs.

Not sure why everyone is throwing arms up over VAT, if your a VAT registered business then essentially its a non-tax (you are merely collectors of tax on behalf of HMRC). If your non-vat or consumer than the change in VAT is equivalent to the drop to 15% and its subsequent rise. If that prevents you from buying you couldn't afford it.

The VAT increase will hit those with the least wanting the latest "must-have" hardest.

Finally the Government is starting to tackle the growing pay cheque for the unemployed. Government should lead on this and show that being in work, unless genuinely unable to do so, does pay.

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By carachapman
23rd Jun 2010 11:57

Firm but fair

I have to say that I agree with the comments above. This is a much needed firm but fair budget. It won't please everyone (they never do!) and everyone pays the price somewhere along the line, but I think that a sensible approach has been taken and hope that this puts our economy back on track. 

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David Winch
By David Winch
23rd Jun 2010 22:39

Spending cuts

To my mind the proposed spending cuts are of much greater significance than the proposed tax changes.

Cutting spending by 25% on average in most areas over the next 4 years will have a very significant impact in my view - particularly upon those businesses for which government is a major customer.

David

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By cymraeg_draig
23rd Jun 2010 23:41

Neutral

I would say the budget was fairly neutral to the ordinary man in the street.

Labour are bl;eating about VAT but lets be honest, when labour dropped it by 2.5% did anyone actually notice?  So why would we notice it going up by the same amount.

Like David I think the cuts will have more effect.  It depends where the ax falls.

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By abelljms
25th Jun 2010 13:35

This is the Budget really

 

EXECUTIVE SUMMARY OF CHANGES THIS TAX YEAR

 

VAT up to 20% 4/1/11

IPT up 1%/2½% 4/1/11

CGT 28% rate for higher rate tax-payers 22/6/10

Bank Levy 0.04% of balance sheet if you are over £20bn 1/1/11

Cider Duty increase cancelled “from 30.6.10”

Landline Duty abolished before it started

And there were some current year spending reductions announced a few days ago

 

everything else was after TWO MORE budgets so who knows what reality will actually happen.

e.g. s

Dec 2010 VAT rules tweaked w.e.f. 1.4.11 to screw more dough out of economy

Mar 2011 personal allces up by only £500 instead of £1000 due to "recent lower than expected tax receipts"

 

etc.......

 

 

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