We all knew that Chancellor George Osborne was going to announce an increase in Capital Gains Tax (CGT) recently, but we didn't expect the rate to rise immediately. Other surprises included reductions in the rates of corporation tax for both small and large companies and in the rates of capital allowances for all businesses.
A rise in the standard rate of VAT to 20% was widely expected, but this increase has been delayed until 4 January 2011, which is the first working day after the Christmas break.
The 1% point increase in NI rates from 6 April 2011 is already planned, but we are assured by George that through some manipulation of thresholds this increase will not be felt by most people. However, we won't know the exact starting points for employers and employees NI until the Autumn Budget statement on 20 October 2010.
Basic rate taxpayers aged under 65 will benefit from a £1,000 increase in their personal allowance from 6 April 2011. Those aged over 65 already receive a higher personal allowance, if their total income is below £28,930.
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Merchant McDonald & Company are a firm of Chartered Certified Accountants committed to giving all of our clients a value for money service. We are a small business ourselves, so we understand the challenges that you face on a daily basis. .
All clients receive fixed fees, work delivered on time and free unlimited phone support. Visit our website http://www.merchantmcdonald.co.uk for more information about our services or further details on how the budget will affect your business.
