Budget 2009

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A summary of the headline issues for the 2009 Budget

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Budget 2009

  1. 2. A summary of the headline issues for the 2009 Budget
  2. 3. VAT Income Tax Capital Allowances Business Support
  3. 4. Income Tax
  4. 5. <ul><li>For individuals earning in excess of £150,000: </li></ul><ul><li>from April 2010 a new income tax rate of 50% will be introduced </li></ul><ul><li>from April 2011 there will be a restriction on tax relief on pension contributions </li></ul><ul><li>For individuals earning in excess of £100,000: </li></ul><ul><li>there is a new restriction to their personal allowance </li></ul>
  5. 6. <ul><li>the 2009 Budget has tried to incentivise savers by increasing the ISA limit to £10,200. </li></ul><ul><li>the cash element has also been appropriately increased to £5,200 </li></ul>
  6. 7. VAT
  7. 8. <ul><li>on 1 January 2010 the rate of VAT reverts back to 17.5% </li></ul><ul><li>the 2008 Pre-Budget report temporarily reduced VAT to 15% for a 13 month period </li></ul><ul><li>businesses should prepare for the change back </li></ul><ul><li>other VAT changes include the annual increase to the registration and deregistration thresholds </li></ul>
  8. 9. Business Support
  9. 10. <ul><li>Business Payment Support Service was introduced to assist businesses facing temporary financial difficulties </li></ul><ul><li>it has now been extended to businesses expecting to make a loss </li></ul><ul><li>this allows those businesses to offset these losses against tax bills on profits from the previous year which they are unable to pay </li></ul>
  10. 11. <ul><li>another help for businesses is an extension to the loss carry back rule </li></ul><ul><li>the 2008 Pre-Budget restricted these losses to £50,000 </li></ul><ul><li>the £50,000 restriction remains. However, the relevant period is now for two years from 24 November 2008 for companies and 6 April 2008 for unincorporated businesses </li></ul>
  11. 12. Capital Allowances
  12. 13. <ul><li>this year’s major change to Capital Allowances concerns written down allowance </li></ul><ul><li>this is currently 20% on plant and machinery and will double to 40% from 1 April 2009 for companies and 6 April 2009 for unincorporated businesses </li></ul><ul><li>the Annual Investment Allowance of £50,000, introduced last year, remains unchanged </li></ul>
  13. 15. <ul><li>Enter your firm’s address </li></ul><ul><li>Enter your telephone number </li></ul><ul><li>Enter your email address </li></ul><ul><li>Enter your website </li></ul>

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