News

We list below the main tax measures as announced while the Chancellor speaks:

• The standard rate of VAT will be increased to 20 per cent from 4 January 2011.
• The corporation tax main rate will be reduced from 28 per cent to 24 per cent over the next four years, starting in April 2011.
• The corporation tax small companies rate will be reduced from 21 per cent to 20 per cent from April 2011.
• From April 2012 the main capital allowances writing down allowance rate will be reduced to 18 per cent, and the special rate will be reduced to 8 per cent; the Annual Investment Allowance will be reduced to £25,000.
• The national insurance employer's weekly threshold will rise from £110 to £131 in April 2011, and there will be an exemption of up to £5,000 for the first 10 employees employed by new businesses outside the South East.
• The income tax personal allowance will be increased by £1,000 from April 2011. Higher rate taxpayers will not benefit, and the higher-rate threshold will be frozen until 2012/13.
• The capital gains tax rate for higher-rate income tax payers will be increased to 28 per cent from midnight tonight. The annual allowance will remain at £10,100 and will continue to be indexed in future. The entrepreneurs' relief lifetime limit will be increased to £5 million.
• The furnished holiday lettings rules will not be abolished.
• The government will consider less complex alternatives to the pensions tax relief restrictions for high earners due to take effect in April 2011.
• A bank levy will be introduced in January 2011.
• Insurance Premium Tax rates will be increased from 5 per cent to 6 per cent and from 17.5 per cent to 20 per cent.
• The proposed landline duty will be abolished.
• The proposed video games tax relief will be abolished.
• There will be a consultation on a change from a per passenger aviation duty to a per plane duty.
• The earnings limit for tax credits will be reduced to £40,000, and other reductions will apply for those still entitled.