- Since the 2008 Budget companies and non incorporated entities have been able to claim a 100% capital allowance on the first £50,000 of expenditure on qualifying plant & machinery (excluding cars). This has been increased to £100,000 for expenditure incurred after 1st April 2010 for limited companies and after 6th April 2010 for non incorporated entities. However this allowance is time apportioned if the accounting period straddles 1st April/6th April 2010.
- The first year allowance of 40% on plant & machinery acquired over and above the £50,000 annual investment allowance will end on 31st March 2010 for companies and 5th April 2010 for non-incorporated entities.
- The inheritance tax threshold will increase to £350,000 on 6th April 2010 as previously announced, but will be frozen at this threshold until 2014/2015.
Personal Income Tax
- With effect from 6th April 2010, the previously announced 50% rate of income tax will come in for taxpayers with income in excess of £150,000.
- Also with effect from 6th April 2010, taxpayers with income between £100,000 and £112,950 will have their personal allowances progressively withdrawn.
- Taxpayers with income of more than £150,000 will have further restrictions on the availability of higher rate tax relief on pension payments with effect from 6th April 2011. Only basic rate tax relief will be available and anti-avoidance legislation is currently in place to prevent stockpiling of pension savings in advance of 6th April 2011.
- With effect from 6th April 2010, the total amount that you can invest in an ISA will increase to £10,200 per annum, of this the amount that you can invest in a cash ISA will increase to £5,100 per annum.
- The Chancellor announced a new company car benefit rate of 5% to come into effect from 6th April 2010 and will be applicable to company cars with CO2 emissions of 75g/km or less. This new rate will be effective until 5th April 2015. The top rate of taxable benefit, 35%, will now be levied on cars with a CO2 emission of 230g/km for petrol vehicles, this is a reduction from 235g/km.
Capital Gains Tax
- The annual exempt amount remains unchanged at £10,100 for individuals.
- Entrepreneurs’ relief, which allows individuals to pay only 10% capital gains tax on the first £1 million of chargeable gains arising on the disposal of shares in a company that they work for or an interest in a business, will be increased for disposals on or after 6th April 2010 to cover the first £2 million of chargeable gains.
Value Added Tax
- From 1st April 2010, the level of taxable turnover at which a business is required to register for VAT will increase by £2,000 to £70,000. The level of predicted future turnover at which a business can deregister also rises by £2,000 to £68,000.
- Also from 1st April 2010, HMRC will treat the date of receipt of a cheque as being the date that it clears in their bank account and not the date that they physically receive the cheque, which has previously been the case.
Stamp Duty Land Tax
- The threshold above which stamp duty land tax is payable on residential properties has remained unchanged at £125,000, except for first-time owner-occupier buyers who will not need to pay stamp duty land tax on the acquisition of a residential property with a value of under £250,000 between now and 25th March 2012.