News

24/03/2010 - Budget 2010 - The Main Points

Savings
From next month, annual ISA limit will rise from £7,200 to £10,200 and ISA limits will increase annually in line with inflation.
Fuel, cigarettes and alcohol
3p fuel duty rise to be phased in between April and January 2011

Duty on cider to rise by 10% from Sunday

Wine, beer and spirit duty up 2% a year until 2013

Tobacco duty up 1% this year and 2% a year in future years

Housing

Stamp duty scrapped for homes below £250,000 for first-time buyers

Stamp duty on residential property sales over £1m to increase to 5%

UK Economy

Economy contracted 6% during the recession

Predicted growth of 1-1.25% in 2010, in line with forecasts

Downgrades growth forecast for 2011 to 3-3.5%

Business

£2.5bn support for small business to boost skills and innovation Annual investment allowance doubled to £100,000.
Business rates cut for one year from October, bringing tax reduction for over 500,000 small businesses.
Entrepreneurs' relief for Capital Gains Tax will be doubled to £2m on which the lower rate of 10% will be taxed.

Bank Lending

One-off bank bonus tax has raised £2bn, double the amount forecast

Backs tax on bank transactions but on global basis

A million extra people guaranteed basic bank account

Jobs and Training

Reduce time over-65s have to work to receive work credits

Six month work or training guarantee for under 24s extended to 2012

Borrowing

Borrowed £167bn in 2009-10, £11bn lower than previously forecast

Borrowing to fall from £131bn in 2011-12 to £74bn in 2014-15

Other taxes and allowances

No changes to VAT or income tax planned

Inheritance tax threshold frozen for four years

Government Savings

On track to achieve £11bn efficiency savings target

Reform of housing benefit to save £250m

15,000 civil servants to be relocated outside London

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