June 2010 Budget Highlights

Initial tax headlines from todays speech include:

Corporation Tax

Main CT rate to reduce by 1p every year for 4 years to 24%
Small Companies Rate to be cut to 20% from 1 April 2011
Taxation of Foreign profits, IP and R&D to be reformed to make UK more business friendly
Reduction in Capital Allowances from 20% to 18%, and from 10% to 8%, from 1 April 2012
Annual Investment Allowance reduced from £50,000 to £25,000 from 1 April 2012
Videogames relief will not be introduced

VAT / Indirect Tax

20% main rate to be introduced on 4 January 2011, with continued exemptions for essential goods
Insurance Premium Tax rates to increase from 5% to 6% and from 17.5% to 20%


Capital Gains Tax

Rate of CGT to increase to 28% for higher rate and top rate income tax payers (basic rate taxpayers rate to remain at 18%) with no tapering based on length of ownership
New CGT rate to be introduced for gains made from midnight
Annual exemption to remain unchanged at £10,100
Entrepreneurs' Relief will apply to first £5M of qualifying gains

Income Tax

Personal allowance to increase by £1,000 from 5 April 2011 - higher rate and top rate taxpayers will not benefit
Higher rate income tax threshold to remain unchanged until 2013
Furnished Holiday Letting rules will not be abolished

National Insurance

Employers NIC threshold to increase above inflation as planned
Up to £5,000 exemption from Employer's NIC for each of first 10 people employed by new businesses located outside South East

Inheritance Tax

No announcements in speech

Stamp Duty

No announcements in speech

Other

Introduction of a Bank Balance Sheet Levy, subject to a deminimis level, from January 2011
Landline Duty will not be introduced
Freeze in Council Tax for 2011/12