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2010 Emergency Budget

Please click this link to open up a PDF version of the Warwick Butchart June 2006 Budget Summary, which covers the key tax issues in George Osborne’s first Budget. This Budget had been characterised as ‘the unavoidable Budget’ and the ‘emergency Budget’ in which spending cuts outweighed tax increases by a ratio of 77% spending cuts to 23% tax increases. There were a number of important announcements about tax, including:

  • The increase in the rate of VAT from 17.5% to 20% to take effect in the new year.
  • The increase in the personal allowance in the tax year 2011/12.
  • The immediate increase in the rate of capital gains tax for higher rate income tax payers from 18% to 28%.
  • The rise in entrepreneurs’ relief for capital gains tax from £2 million to £5 million.
  • The progressive cuts in the rates of corporation tax over the next four years, financed by cuts to capital allowances.
  • The abolition of the effective requirement to annuitise pensions at age 75 and the prospect of changes to higher rate tax relief on pension contributions.

We hope this summary proves useful. Please feel free to forward a copy to any friends, family or colleagues who might be interested. Naturally, if there are any issues arising regarding investment and financial planning matters, we would be pleased to hear from you.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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