The 2010 budget saw no major changes in the tax regime nor any detailed plans on how the budget deficit will be tackled with cuts and efficiency measures. There were some sweeteners ahead of the election, such as the staging of the fuel duty increase and the doubling of the stamp duty exclusion threshold for first time buyers. It was already known that ISA limits will increase to £10,200 from 6th April 2010, but it was announced yesterday that they will subsequently increase in line with inflation every year.
 
Below is a summary of the main points:
 
·          3p fuel duty rise to be phased in 3 stages, April, October and January 2011
 
·          Duty on cider to rise by 10% above inflation; wine, beer and spirit duty up 2% a year until 2013 and tobacco duty up 1% this year and 2% a year in future years
 
·          Stamp duty scrapped for homes below £250,000 for first-time buyers but increased to 5% for property sales over £1m
 
·          Predicted GDP growth of 1 - 1.25% in 2010, in line with forecasts. Growth forecasts for 2011 revised down to 3 – 3.5% however
 
·          Borrowing this year forecast to be £167bn - £11bn lower than expected thanks to better tax receipts. The budget deficit will be more than halved by 2014
 
·          The one-off bank tax raised £2bn - far above expectations. RBS and Lloyds Bank Group to provide £94bn (gross) in small business loans
 
·          No changes to VAT or income tax planned
 
·          Inheritance tax threshold frozen for four years
 
·          Higher winter fuel allowance rates extended for further year
 
·          £4 a week rise in child tax credit for parents with young children from 2012
 
 
Should you wish to discuss how any changes as a result of this budget affect your personal circumstances, please contact us on 01342 840 100.
 
Please also refer to our 2010 tax tables located in the Literature section under the Library tab on this website