2010 UK Budget
The Chancellor, George Osborne, presented the first Budget of the Coalition Government which sets out a five-year plan to rebuild the British economy based on the Government's stated values of:
- Responsability
- Freedom
- Fairness
The Budget shows how the Government "will make the tough choices required to tackle Britain's record deficit." It sets out a plan intended to get the public finances back under control, and provides a springboard for a private sector-led recovery with balanced growth across sectors and regions.
George Osborne made the following annoucements during his Statement:
- Government restricts pension tax relief
- Government introduces banking levy
- Joint statement on bank levies from the UK, French and German Governments
Some significant points:
- Increase in standard rate of VAT from 17.5% to 20% with effect from 4 January 2011
- Above-inflation increase in personal allowances for 2011/12
- Reduction in tax credits for middle-income families from 2011/12
- Employer's NIC holiday for new businesses in some parts of UK from September 2010
- Rethinking of the restriction of higher rate pensions tax relief in 2011/12
- Reform of requirement to use pension funds to buy an annuity at age 75
- Immediate increase in rate of CGT to 28% for higher rate taxpayers
- Increase in lifetime limit for Entrepreneurs' Relief to GBP5m
- Cuts in corporation tax rates from April 2011 - main rate down to 24% over four years
More information can be found on the HM Revenue & Customs website http://www.hmrc.gov.uk/budget2010/index.htm