Over the next few days, you’ll be able to read extracts from the budget report produced by Branston Adams (Chartered & Certified Accountants) – one of our professional members in Surrey. The full report covers:-
• Introduction & Highlights
• Income Tax and Personal Savings
• Capital Taxes
• Business Tax and Investment Incentives
• Tax and Travel
• Value Added Tax
• Duties
• Penalties Reform
• National Insurance Contributions (NICs)
• Other Measures
• What They Said
• My Key Budget Points
• 2009/10 Tax Calendar
For more information about any of the issues raised in the report, to find out how they affect you and your business or for a copy of the full report, please contact :-
Branston Adams
Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU
Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652
Email: paul@taxaccountancy.com
http://www.branstonadams.co.uk
Please note: while most taxation changes take effect from the start of the financial year, or tax year, some may not take effect until 2010 or later. Where relevant, details of these changes are included in the full report.
We start today with the “Introduction & Highlights”. Tomorrow’s post will include “Business Tax and Investment Incentives”.
Introduction & Highlights
Chancellor Alistair Darling has unveiled a series of measures aimed at tackling the ‘unprecedented economic crisis’. As widely anticipated, growth forecasts for 2009 have been revised down, with the economy expected to shrink by 3.5%; while borrowing forecasts have risen sharply to £175 billion. However, despite the economic gloom, the Chancellor asserted that the economy will recover, forecasting growth of 1.25% next year.
Key announcements include the introduction, from April 2010, of a 50% income tax rate for those earning more than £150,000 a year. The stamp duty land tax ‘holiday’ for residential properties valued at £175,000 or less willbe extended to the end of 2009. Measures for businesses include the introduction of a temporary 40% first year allowance and an extension of help for loss-making companies.
The Chancellor allocated £1 billion to tackle climate change, and announced a commitment to cut UK carbon emissions by 34% by 2020. The introduction of a ‘car scrappage’ scheme was also confirmed, offering £2,000 to people who trade in cars that are over 10 years old. Meanwhile, fuel duty will rise by 2p a litre from September 2009.
Other measures include an increase in the child element of Child Tax Credit from April 2010; credits towards the basic state pension for grandparents of working age who
care for their grandchildren; and a rise in the annual limit for ISAs to £10,200.
Budget Highlights
• 50% income tax for high earners
• 40% first year capital allowance
• Extension of trade loss carry back rules
• Extension of SDLT ‘holiday’
• Removal of higher rate tax
• Relief on pension contributions
Economic forecasts for 2009/10
• Inflation 1%
• Government spending £608 billion
• Growth -3.5%
• Government receipts £496 billion
• Net Borrowing £175 billion
• Public Sector Year End Net Debt £792 billion