Starting April 2010, a new 50% income tax rate will apply to individuals earning over £150,000, with personal allowances phasing out for those earning more than £100,000. The ISA cash limit will increase, and the higher stamp duty limit will be extended until December 2009, while certain loss reliefs will be subjected to new regulations. Corporation tax will remain at 28% for larger companies and 21% for smaller ones, with changes to VAT rates effective January 2010.

2. The Budget 2009

3. From April 2010 a new income tax rate of 50% will apply to individuals earning in excess of £150,000. Phasing out of personal allowances of individuals earning more than £100,000 will start from 2010. INCOME TAX

4. Pension investment relief for those earning more than £150,000 will be restricted. This applies from 6/4/11. Anti-forestalling legislation applies from 22/04/09. PENSIONS

5. The ISA cash limit has increased to £5100 ISA limits to be increased from £7,200 to £10,200 INVESTMENTS

6. The higher £175,000 limit for Stamp Duty will be extended for a further three months to Dec 2009. STAMP DUTY

7. Loss relief for furnished holiday lettings will be removed from 2011. LOSS RELIEF

8. Individual partnerships and companies will be able to carry back losses for three years limited to £50,000 per annum. Carry back has been extended to 2010. This applies to: un-incorporated businesses from tax years 08/09 to 09/10 and incorporated businesses YE between 24 Nov 08 and 23 Nov 2010 LOSSES

9. Business Payment Support Service – anticipated losses will be allowed to reduce the tax due on previous years’ profits. Conditions include: if you can’t pay CT or IT is due on PU profits if you are likely to make a loss in the current year. LOSSES CONTD….

10. Budget Note 62: large companies will have to identify a senior accounting officer and notify HMRC. This is backed by a penalties regime. Corporation Tax remain at 28% for larger companies and 21% for smaller companies. COMPANIES

11. Cars costing over £12,000 will go into one of two pools: cars exceeding 160gm/kg into a WDA 10% pool cars under 160gm/kg add to the main pool VEHICLES

12. The VAT registration limit will increase by £1000 to £68,000 from May 1 2009. Deregistration can apply for turnovers of £66,000 VAT will change back to 17.5% from 1 st January 2010. VAT

14. ACCA Technical Advisory 0207 059 5920 [email_address] www.accaglobal.com/advisory