SNAPSHOT OF THE 2010 BUDGET

So now we've heard it - Alistair Darling's third Budget speech. With a General Election looming and the country's dire economic position, what did the Chancellor say, and more importantly, what did it actually mean for you and I?

A few of the highlights:

Income Tax and VAT
The Chancellor announced that there would be no changes in VAT, income tax or National Insurance rates.

Corporation Tax
The main rate of Corporation Tax remains unchanged at 28%.
The Small Company Rate of Corporation Tax remains at 21%. (The previously announced rise to 22% announced in the 2009 Pre-Budget Report has been deferred until 2011-12.)

Capital Allowances
Small businesses can claim a higher annual investment allowance of £100,000.

Business Rates
Business rates will be cut for one year. This will take effect from October 2010.

Entrepreneurs Relief for Capital Gains Tax
The lifetime limit is to be doubled to £2m on which the lower 10% rate will apply.

Inheritance Tax
The threshold for inheritance tax is frozen for a further four years

Child Benefit
Child benefit will rise to £20.30 a week from April 2010.

Individual Savings Accounts
The annual ISA limits are to rise to £10,200 overall and will in future increase annually by inflation.

Pensioners / Older Workers
The higher Winter Fuel Payment of £250 and £400 for over 80s is guaranteed for a further year.

Stamp Duty
The Stamp Duty limit for first-time buyers is doubled from 25 March 2010 to £250,000 for this year and next. Stamp Duty will increase to 5% for houses valued over £1m from April 2011.

Fuel Price increases
Fuel duty rises will be staged. They rise by 1p in April, followed by a further 1p rise in October and the balance rising in January 2011.
Alcohol duties on beer, wine and spirits are to rise by 2% above inflation from 29 March 2010. Duty on cider is to increase by 10% above inflation at the same time. Tobacco duty rises immediately by 1% above inflation and will increase by 2% above inflation each year until 2014.

For a more indepth look at the Budget please follow the link here 2010 Budget Summary.

For any queries, please feel free to contact us by email or telephone.