Fw: Vantis' Coalition Budget Summary - 22 June 2010

Andrew Cawkwell
Partner
Direct Dial: 0191 2444338
Mobile: 07973 502809

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From: Vantis <tax@vantisplc.com>
To: Andrew Cawkwell
Sent: Tue Jun 22 21:19:23 2010
Subject: Vantis' Coalition Budget Summary - 22 June 2010

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The Chancellor carried both the weight of the economy and public perception on his shoulders as he delivered the first Budget of the coalition government this afternoon. Whilst the view of the previous Chancellor was that spending cuts would damage the recovery, this has been overwhelmed by George Osbourne's view being exactly the opposite; a failure to reduce the deficit will reduce confidence in British sovereign debt with far more serious consequences. He has made no secret of wanting to tackle the deficit early, with the promise of some better fiscal news later in the Parliament. Whilst spending cuts represented a large part of the Budget proposals, there were two principle tax changes. The much anticipated increase in Capital Gains Tax will have effect from midnight tonight but at 28% for higher rate taxpayers is possibly not quite as penal as was anticipated. It is also partially offset by a very significant and welcome extension to Entrepreneurs' Relief, which now  taxes the first £5m of qualifying gains at 10%. VAT will rise to 20% in the New Year from 4 January 2011, bringing with it the complex practical issues for all types of business in both implementing and accounting for the rate change. As usual, our summary is intended to make you aware of the major tax changes and how they may affect you or your business.  We look forward to discussing these with you in the weeks to come. Best regards Chris Maddock Tax Director Please click on the image below to download a full copy our Coalition Budget 2010 Summary. Head Office 82 St John Street London EC1M 4JN t:+44 (0)207 417 0417 f:+44 (0)207 417 0418 Vantis Locations Beaconsfield e: beaconsfield@vantisplc.com Birmingham e: birmingham@vantisplc.com Darlington e: darlington@vantisplc.com Epsom e: epsom@vantisplc.com Hartlepool e: hartlepool@vantisplc.com Hornchurch e: hornchurch@vantisplc.com Jersey e: jersey@vantisplc.com Leicester e: leicester@vantisplc.com London e: london@vantisplc.com Loughton e: loughton@vantisplc.com Manchester e: manchester@vantisplc.com Marlow e: marlow@vantisplc.com Middlesbrough e: middlesbrough@vantisplc.com St Albans e: stalbans@vantisplc.com Sidcup e: sidcup@vantisplc.com Worthing e: worthing@vantisplc.com  If you would like to keep up to date on all Vantis news, you can subscribe to our RSS feed. Click here to view the RSS frequently asked questions. www.vantisplc.com Accountancy • Taxation • Business Advice • Corporate Finance • Asset Finance • Forensic Accounting & Dispute Resolution • Business Recovery & Personal Insolvency Services • Restructuring & Turnaround Services • Outsourcing • Management Consultancy • Company Secretarial • Customs Duty Recovery & Advisory Services • Independent Financial Advice • High Net Worth Services • Unsubscribe | Recommend a colleague | Change mailing list preferences | Update contact details Vantis Financial Management Ltd, a Vantis plc group company, is authorised and regulated by the Financial Services Authority. Vantis Group Ltd, a Vantis plc group company, is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. The content of this document is intended for general guidance only and, where relevant, represents our understanding of current law and HM Revenue and Customs practice. Action should not be taken without seeking professional advice. No responsibility for loss by any person acting or refraining from action as a result of the material in this document can be accepted and we cannot assume legal liability for any errors or omissions this document may contain. © Vantis, June 2010. All rights reserved.

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