Budget 2010 Highlights

April 6th, 2010  |  Published in Uncategorized

CGT Entrepreneurs’ Relief to apply to first £2 million and the Capital Allowance Annual Investment allowance doubles.

No changes to income tax or NICs or IHT (we knew that already).

VAT rise in registration threshold. The annual taxable turnover threshold which determines whether a person must be registered for VAT will increase from £68,000 to £70,000, and the threshold which determines whether a person may apply for deregistration will be increased from £66,000 to £68,000. The existing conditions for determining registration and deregistration remain unchanged.

Capital Allowances Annual Investment Allowance increased to £100,000. The Annual Investment Allowance (AIA) provides relief at 100% to businesses investing in certain plant or machinery. The maximum amount of the allowance is to be increased, for expenditure incurred on or after 1 April 2010 (companies) or 6 April 2010 (individuals and partnerships), from £50,000 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)

. 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.

A 10% increase on alcohol 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.

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