CGT Entrepreneurs' Relief to apply to first £2 million and the Capital Allowance Annual Investment allowance doubles.
High on politics but also stuffed full of anti-avoidance measures...
- No changes to income tax or NICs or IHT (we knew that already).
- VAT rise in registration threshold.
- Capital Allowances Annual Investment Allowance increased to £100,000.
- No changes to CGT rates, but Entrepreneurs' Relief lifetime allowance doubled to £2 million.
- Stamp duty on residential property to increase to 5% from property over £5 million (from 2011/12)
- 0% stamp duty holiday for first time buyers of homes worth less than £250,000 (from midnight 24/3/2010)
SME anti-avoidance measures include:
- A tightening up the dislcosure rules for tax avoidance schemes.
- Crack down on EBTs (but not until 2011/12).
- Transactions in securities rules more targetted (preventing "pheonixing").
- No tax relief for Close companies who write off loans to participators.
- Crack down on certain share scheme arrangements.
Economic forecasts:
- Growth 1% to 1.5%.
- Inflation 3%.
- Interest rates predicted to remain low.
- Government borrowing this year £167 billion.
Misc. but interesting
- The big fuel duty rise is postponed, so just +1p in April.
- Consultion on scapping of default retirement age.
- A Goverment guarantee of training for under 24 year olds who are out of work for more than 6 months.
- ISA limits to increase, then annually inline with inflation.
The random tax moment?
A 10% increase on aclohol duty on cider from midnight on Sunday.
Most of the forthcoming changes for 2010/11 and beyond were announced in the Pre Budget Report and earlier Budgets. You can find the full summary of tax in our Budget report 2010: tax planner .
