Complaints

Emergency budget

25 June 2010

On 22 June 2010, new Chancellor George Osborne released details of the emergency budget that sets out a five-year plan to try and rebuild the British economy. Below is a summary of key measures taken that will affect you.

Tax

  • From 4 January 2011 the main rate of VAT will rise from 17.5% to 20%.
  • Personal income tax allowance to be increased by £1,000 in April to £7,475.
  • Capital Gains Tax remains at 18% for low and middle-income savers but higher taxpayers will pay 28%.

Business

  • From April 2011, the threshold at which employers start to pay National Insurance will rise by £21 per week, above indexation.
  • Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%.† The small companiesí tax rate will be cut to 20%.
the emergency budget