I'm really sorry, I can't access my own website at present - thanks geeks! - so publishing here so the info is out.
Government Abell Morliss Comment
Corporation Tax Rate to remain at 21% up to £300,000 profits
28% over that in current 10/11 year In 11/12 both rates drop by 1%. Good news if you make profits.
Rates planned to converge so by end of parliament we will have a single rate?
Income Tax Rates Lower Bands stay same:-
20% is the basic band for 10/11 up to £37,400, then 40% on excess
Plus 50% if you go over £150,000
NB. Savings income up to £2,440 (09/10 2,440) taxed at 10% still
But changes for 11/12 NB. Don’t forget that the effective max. rate of tax is already 40% plus 1% NIC making 41%. In 2010/11 Darlings last Budget introduced a 50% (+1%) on income above £150,000.
Also a sly reduction in personal allowance for incomes over £100,000
Personal Allowances Rate from 6.4.10
is un–changed at £6,475 In 11/12 it will go up to £7,475 (allegedly)
Notional Insurance No changes - 11% for serfs up to £44,000 salary, then only 1% everything above
12.8% paid by the rulers And in 11/12 it is 12% for the oppressed. Rulers will go up to 13.8% same date, despite previously announced as NOT going up !
But still NIC is not abolished !
It is crazy not to incorporate this into our standard tax systems. Government spouts about reducing red tape, and this would massively help business admin at the stroke of a pen, and we could re-deploy a bunch of pen-pushers
Capital Gains Tax Rate remains at 18% for standard rate tax-payers.
New immediate rate of 28% for those paying higher rate income tax
10% for selling business assets. And the lifetime limit for flogging business assets, up even higher from £1m. to £5m. This will cane 2nd home traders as the Gain will form part of the liability to higher rate calcs. E.g. Gain of £150k, and caramba! you are a Higher Rate person.
Our other views on CGT are controversial here, so no comment
Annual exempt amount un-changed at £10,100 This is another personal allowance if you can make the gains
VAT Up from 17.5% to 20% on 4th January 2011 Why delay from 1.8.10?
No change in the various exemptions
Inheritance Tax No new ‘initiatives’
Threshold un-changed at £325,000 But remember this is now available jointly with your partner so really the limit is now £650k.ish.
And HMRC alleges only 16,000 estates paid IHT in 2009 !
Capital Allowances £100,000 annual investment allowance for just 10/11
R&D allowance remains at 175% This is ‘French’ for 100% 1st year allowance on 1st £100k of Capital Investment, and is a fig leaf towards helping manufacturing, but really it needs to be £1m pa to be meaningful.
Instead of which the first dopey decision by our new government has been taken to REDUCE this to £25,000 from April 2012. So make sure your plant is purchased by 31.3.12
WDA remains at 20% But from 1/4/12 it is reduced to 18%
Vans Company Vans Still the best tax-free business perk going, thanks to Gordon’s changes a while back. Especially if you buy a double-cab pickup with CD multi-changer, climate control and leather seats - Dohh!
Insurance Premium Tax Lower rate 5%
Higher rate 17.5% From 4th January 2011 L=6% H=20%
TIP pay your insurances premiums in December 2010 !!
FUEL Fuel still going up 1p litre every few months to avoid us all getting a head of steam over being fleeced to the cleaners
BOOZE No changes except Cider Cider tax increase reversed on 30th June 2010 – buying votes in zoiderland?
FAGS No changes Ditto
Stamp Duty No new proposals
0% on up to £250,000 house sales.
1% £125k. up to £250,000
3% to £500,000
4% Beckhams You have to be a 1st time buyer to get up to £250k. at 0% - how will they check? Apparently the restriction applies even if you previously owned a mudhut in Eritrea!
Landfill Up another £8 tonne from April 2011 to £48 The minimum rate from April 2014 is set at £80 tonne
A massive increase that skimmed under most peoples’ radars
Council Tax Allegedly no increases for anyone in 11/12
ISA The annual allowance is up to £10,200 (£7,200) …but it’s pointless saving with interest rates soooo low.
Civil Service Continued headcount reductions in next few years We are paying a fortune for semi-employed civil servants with little to do, so the axe is being wielded – or so Government says. Quite how it is to be done is most intriguing…will need a good statistician to ‘prove it’.
And 15,000 of the 45,000 overheads in London are being binned to the provinces to:-
a] save money on expensive London office property costs
b] get the horrors out of London
c] save money by them not getting their cushy London c.o.l. allowances
d] ‘exporting’ unemployment from Bootle/Newcastle to London
Enterprise The usual warm words
Pensions Higher-rate relief on contributions abolished for 2010/11+ What about withdrawing Corporation Tax relief on Goodwinesque contributions by employers ?– that’s who we should be clobbering big time.
PSBR The mountain for 2010/11 is guessed at £150 billion And for loads more years to come, and then when we’ve finished borrowing this ridiculous money, we have to start slooooowly paying it back.