Personal Income Tax
National Insurance Contributions
Capital Gains Tax
Stamp Duty Land Tax
Value Added Tax
Budget Summary Introduction
The last Budget before an election raises as many questions as it answers. Will the Chancellor try to bribe the electorate? Is the electorate open to bribery? If the Government loses the election, will this Budget matter at all - will the incoming Chancellor change everything anyway?|
We have Mr Darling's plans in some detail, but not the Opposition's. It seems likely that a Conservative Chancellor would make changes, but he would probably stick with most of the plans for the tax year 2010/11 because the election will not happen until the tax year has already started. It seems likely that whichever party wins, there will be a reappraisal of the government's finances soon afterwards.
There is no doubt that Mr Darling was in a difficult position when preparing this Budget. The country's finances are in a dire state, and he had to tread a tightrope between risking a return to recession on the one hand and appearing too lax for the financial markets on the other. Depending on the national vote, we may never find out if his answers were right. He repeatedly claimed in his speech that the current Government "made the right calls" in dealing with the recession, but his assurances may have been too little, too late.
As usual, the speech itself does not tell the full story. Many of the important details are hidden away in press releases issued by HM Revenue & Customs after the Chancellor sits down. This booklet summarises the main changes and outlines their likely effect on the average taxpayer - subject to the political uncertainties of a General Election!
- New 50% rate of income tax in 2010/11 for income over £150,000
- Restriction of personal allowances in 2010/11 for income over £100,000
- Most other rates and allowances frozen at 2009/10 levels
- Increases in company car benefits, but cuts for ultra-green vehicles
- Two year holiday for Stamp Duty Land Tax for first-time buyers of homes bought for up to £250,000
- Inheritance Tax threshold frozen for five years
- Doubling of Annual Investment Allowance on plant to £100,000
- Business Payment Support Service likely to be extended