The Chancellor, Alistair Darling, presented the 2009 pre-Budget report today. Although there appear to be no fundamental changes to the tax regime, the key points relating to taxation and benefits are:
National Insurance Contributions to increase by a further ½ per cent from April 2011 (the 2000 budget had already stated an increase of ½ per cent from April 2011), taking the total increase in National Insurance, both employee and employer, to 1%.
Increase in Corporation Tax for smaller companies to be deferred, leaving the 2010 tax rate unchanged. The Time To Pay scheme allowing firms to spread tax payments will be extended for as long as needed.
In April 2012, the point at which people start paying 40% income tax to be frozen for one year, hitting those earning more than £43,000
IHT threshold held at £325,000.
Stamp duty holiday to end on 1st January 2010 on certain properties.
VAT to return to 17.5% from 1 January 2010, as already announced.
Bingo Duty cut to 20% from 22%.
State pension to rise by 2.5% in April 2010.
Employer pension contributions to be included in definition of tax income relating to pensions tax relief for those earning over £130,000.
Child benefit to rise by 1.5%
New 50p tax on landline phones to pay for superfast broadband
The above represents a brief summary of the keys points arising from the pre-Budget report. Many of the finer points in the Chancellor's speech will only become apparent after a detailed review.
Please do not hesitate to contact us if there are any aspects of the tax changes that you would like to discuss further.
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