News for 22nd June 2010 :: Emergency Budget 2010 - Alliotts

Capital gains tax has increased from 18% to 28% for higher rate taxpayers only and basic rate taxpayers will continue to pay at 18%. The increase has been tempered by an increase in the lifetime Entrepreneur’s Relief to £5 million.

The rate of capital allowances has been reduced from 20% to 18% and the Annual Investment Allowance has been reduced to £25,000 although the Chancellor expects 95% of businesses will have their capital investment fully covered.

There was some good news for companies because corporation tax will be reduced to 27% next year and reduced by 1% p.a. thereafter until it reaches 24%. The small companies rate will be cut to 20%.

The balance of spending cuts vs tax increases is actually 77% to 23% which is perhaps why the Budget does not seem quite as painful as we all feared and the Chancellor expects to be able to balance his books by 2016.

Nigel Armstrong
Partner
Alliotts Chartered Accountants and Business Advisors.

Please visit www.alliotts.com/budget_emergency_report_2010 to view our budget summary.

If you have any questions regarding the budget and how it affects your business please contact your dedicated Alliotts partner or your local Alliotts office, alternatively is you can email your question to budget@alliotts.com and one of our specialists will contact you.

For up-to-date news on the budget and its implications, and contemporary issues relating to the business arena visit www.alliotts.com/latest/

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