Budget 2010 The Calm Before the Storm?

With probably his last budget Mr Darling concentrated on the political points of having a dig at the banking sector and at the Torie's calls for public sector spending cuts.

We are currently sorting through the detail on the Budget to see what is lurking in the paperwork. In the meantime here are some headlines that should be of interest :

• Entrepreneurs Relief – the lifetime limit is being doubled so that up to £2m in sales of business assets can potentially benefit from a 10% tax rate

• Annual Investment Allowance – the 100% capital allowances for plant and machinery limit is doubling from £50,000 to £100,000

• Business rates are set to be cut for a year for up to 500,000 businesses

• First time buyers will be exempt from stamp duty for their first purchase if it is under £250,000.

• New 5% stamp duty rate for properties over £1m – but not for a year

Of course, we have a number of pre announced tax rises coming – especially affecting those who earn more than £100,000. If all of this is enough to turn you to drink then don't make sure it isn't cider, as cider duty is set to rise at 10% above inflation!



Whether all of this matters will depend a lot upon what happens if we have a change in Government in the impending General Election. One thing seems certain : taxes will go up and good tax planning will be increasingly important in the years to come.



As more becomes clear about the intended changes we will provide more information, so please watch this space and our website for further changes.