March 2010

March 2010 – Budget Speech

Income Tax

The Chancellor announced that most of the rates and allowances with remain unchanged for 2010/11.  The main changes he announced were:

– The addition of the 50% tax rate (42.5% for dividends) for individuals earning above £150,000.

– The personal allowance will be gradually withdrawn for those individuals with income in excess of £100,000.

National Insurance

All main rates and bands are remaining static.

Capital Gains Tax

The annual exemptions and rates are remaining static.

The entrepreneurs’ relief lifetime allowance has been increased from £1m to £2m.

Corporation Tax, VAT, Stamp Taxes and Inheritance Tax

All main rates and bands are remaining static.

The SDLT thresholds remain static with the exception that first time buyers can claim relief from SDLT on residential purchases of up to £250,000 until 25 March 2012.

The AIA available to companies when purchasing fixed assets has been increased from £50,000 to £100,000.  Effectively this means that the majority of small and medium sized businesses will receive 100% tax relief on capital purchases in the year of purchase.

Supporting Small Businesses and Business Growth

The Chancellor announced his continuing support for small businesses by:

– Temporarily increasing small business rate relief

– Continuing to offer business payment support

– Increasing AIA and ER