Todays emergency budget, the first presented by new Chancellor George Osbourne, has announced some difficult decisions regarding tax and spending.
The aim of the budget was to curb public spending whilst ensuring sufficient funds from taxation to cover the debt and defecits left by the outgoing government.
The most notable of the changes affecting small businesses and individuals include:
- Standard VAT rate increase from 17.5% to 20% from January 4th 2011
- Capital Gains Tax rate to rise from 18% to 28% for higher rate tax payers
- Income Tax Personal Allowance to rise by £1000 to £7475 in April 2011
- National Insurance threshold to be increased by £21 in April 2011
- 10% increase in duty on cider to be abolished
- Adjustments to tax credits and housing benefit to make it fairer on lower income families
Click here to close window