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Our views on the Post Election Budget 2010

June 23rd, 2010

Our summary of what was in the post election Budget yesterday, 22 June 2010, is now available to download from our website.

The Budget didn’t contain any real surprises. The increase in the VAT rate to 20% was widely expected and in fact, we had originally forecast that this would come in in January 2010.

There is some help for businesses included in the budget with a planned decrease in corporation tax rates to 20% for smaller businesses and reducing by 1% for larger businesses per annum until it is at 24%.

The good news comes for clients wishing to sell their businesses. Entrepreneurs Relief which effectively reduces the rate of capital gains tax for all qualifying lifetime gains up to £2m is now extended to £5m.

The main thrust of the Budget was to save money within their spending plans and reduce the tax burden of the benefit system. This has included freezing child benefit for 3 years and stricter rules on other benefits. The good news for lower earners was the increase in the personal allowance by £1,000 and the increase in Child Tax Credits for low income families of around £150 above the rate of inflation next year.

Any comments are very welcome!

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