FW: Budget overview 2010

 

- - Budget 2010 watsonburton.com Tax Services -   budget overview This overview summarises the main changes made by the June Budget applicable to businesses and individuals. It does not deal with matters relevant only to special categories of taxpayer, on which advice can be provided on request.    For further information please contact Watson Burton's tax specialist, Richard Sowler on 07710 178 218. corporation tax      The main rate of corporation tax will reduce to 27% from 1 April 2011, and by a further 1% each year to reach 24% in 2014.  The small profits rate will reduce to 20% from 1 April 2011.   capital allowances   Writing-down allowances will reduce from 20% to 18% and the special pool rate (for long-life assets etc.) from 10% to 8% from 1/6 April 2012.   The annual investment allowance will reduce from £100,000 to £25,000 from April 2012.   A 100% first year allowance is available for expenditure on new zero-emission goods vehicles. vat   The standard rate of VAT increases from 17.5% to 20% on 4 January 2011.  Anti-forestalling and anti-avoidance provisions will seek to prevent creative invoicing/payment arrangements.  There is no change for zero-rated supplies or those charged at the reduced (5%) rate.   capital gains tax   The rate remains 18% for basic rate taxpayers and is increased to 28% for higher rate taxpayers.  The amount of the gain is added to income for this purpose, so may result in a basic rate taxpayer becoming a higher rate taxpayer on the top slice of gains.   The annual exempt amount remains at £10,100.   Entrepreneurs' relief remains, at 10% irrespective of gains, irrespective of the taxpayer's income tax band.  The lifetime permitted total is increased to £5M.   Trusts and estates are taxed at 28% irrespective of income.   Changes take effect from 23 June 2010 income tax   The threshold will increase by £1,000 to £7,475 from 6 April 2011.  The higher rate limit will be reduced by approximately £2,500 so that the increase does not benefit higher rate taxpayers.  The exact reduction will depend on the retail price index for September 2010.   The tax treatment of people non-domiciled in any part of the UK will be reviewed.   national insurance contributions   Employees' NIcs will rise to 11% and employers' contributions to 13.8% from 6 April 2011, an increase of 1% in each case.  Employees' contributions above the upper earnings limit will double to 2% from the same date.   An employers' NIc "holiday" is to be introduced, probably from September 2010, whereby the first £5,000 of employers' NIc will not be levied in respect of the first ten employees employed by new businesses in regions outside London, the South-east and the Eastern regions.            - 1 St James' Gate Newcastle Upon Tyne NE99 1YQ 0191 244 4444 1 City Square Leeds LS1 2ES 0113 235 5455 Floor 29, 30 St Mary Axe London EC3A 8BF 020 7337 8300 www.watsonburton.com - - Subscribe to this newsletter at  marketing.department@watsonburton.com Unsubscribe to this newsletter at  marketing.department@watsonburton.com - The material for this newsletter is intended as a guide only. Whilst the information is correct at time of print, it is not a substitute for legal advice. Watson Burton can accept no responsibility for actions taken based on this information. -

This email has been sent to you by Watson Burton To edit your details/unsubscribe click here

------------------------------------------------------------------------------------------------ WATSON BURTON LLP  1 St James' Gate, Newcastle upon Tyne, NE99 1YQ | Tel: +44 (0) 191 244 4444 | Fax: +44 (0) 191 244 4500 1 City Square, Leeds, LS1 2ES | Tel: +44 (0) 113 235 5455 | Fax: +44 (0) 113 235 5450 Floor 29, 30 St Mary Axe, London EC3A 8BF | Tel: +44 (0) 20 7337 8300 | Fax: +44 (0) 20 7337 8350 enquiries@watsonburton.com | www.watsonburton.com  ------------------------------------------------------------------------------------------------ Confidentiality:    This email and its attachments are intended for the above named only and may be confidential. If they have come to you in error you must take no action based on them, nor must you copy or show them to anyone;  please reply to this email and highlight the error. Quality Control:    It is the policy of this firm to review and approve outgoing communications using a process  of tiered authority. Please note that the originator of the above message may differ from the ultimate sender as a  result of this process. Security Warning:    Please note that this e-mail has been created in the knowledge that Internet e-mail is not a  100% secure communications medium. We advise that you understand and observe this lack of security when e-mailing us. Viruses:    Although we have taken steps to ensure that this email and attachments are free from any virus, we  advise that in keeping with good computing practice the recipient should ensure they are actually virus free. Watson Burton LLP is a limited liability partnership, registered in England with registered number OC306105. A list of members' names is available for inspection at the registered office,  1 St James' Gate, Newcastle upon Tyne, NE99 1YQ. ------------------------------------------------------------------------------------------------ Consider the environment.  Please do not print this email unless essential.