On the 22nd June 2010 the Chancellor delivered his budget; outlining how the government plans to raise and spend money during the coming year. Key announcements made include the following:-
The standard rate of VAT will rise from the current rate of 17.5% to 20% as from the 4th January 2011.
• INCOME TAX & NI
The personal allowance for individuals under 65 will increase by £1,000 in April 2011. No tax will be payable on any income below £7,475 in the 2011 – 2012 tax year.
o - CAPITAL GAINS TAX
For higher rate taxpayers the rate of Capital Gains Tax will increase from 18% to 28%; this will have immediate effect. The annual exempt amount remains the same at £10,100.
o - CORPORATION TAX
For small companies the Corporation Tax rate is to be reduced from 21% to 20%; this will take effect from 1st April 2011.
o - ANNUAL INVESTMENT ALLOWANCE (AIA)
From April 2012 the rate of AIA will be reduced from £100,000 to £25,000.
If you have any queries about the budget and how it may affect you please contact us on 01236 822728.