June 2010 budget highlights

George Osborne, the new Chancellor of the Exchequer, has just delivered his first budget to the nation.

We’ll pick out the key pronouncements for business now but expect to see more comment from Lewis Smith & Co. over the next days and weeks as we get to understand what it will mean for you.

  • The rate of Corporation Tax will be cut to 27% in 2010. It will then by reduced by 1% annually over the next three down to a level of 24%. Importantly the small companies’ tax rate will be reduced to 20%.
  • The main rate of VAT will rise from 17.5% to 20% as of January 4th 2011. Existing exemptions will continue to apply.
  • The standard rate of Capital Gains Tax remains at 18% but from midnight tonight, higher rate taxpayers will pay 28%.
  • The threshold at which employers start to pay National Insurance will rise by £21 per week from April 2011.
  • Personal income tax allowance to be increased to £7,475 in April 2011 (up by £1,000) in April to £7,475. The higher rate income tax threshold is frozen to the 2013/14 tax year.

If the budget has raised any queries about your personal or business tax position then just give us a call to set up a free confidential discussion on 01384 235549 or email us at info@lewissmith.com

Lewis Smith & Co. – Corporation tax specialists for Kingswinford and Quinton