Budget 2010

This was the shortest budget in many years so we didn’t have to chop down a forest to print off the Press Releases. There wasn’t a lot to excite us however and I doubt that this Budget is going to make much of a difference to the majority of our clients.

The 50% higher rate will only sink in when people start paying it and there is going to be much pain then. For businesses there was welcome news that Business Rates will be cut but this will not happen until October. Darling trumpeted that the basic rate band of tax remains unchanged-but somehow forgot to mention that NI rates were increasing. The Annual Investment Allowance-the tax relief on the purchase of equipment- has been increased from 50K to 100K, but obviously you have to have the money to spend on this in the first place. For those selling their businesses the Entrepreneurs Relief whereby the Capital Gains Rate is 10% rather than 18% has been doubled from 1M to 2M. There are also tax breaks on electric cars so Nissan should do well out of it.

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