Emergency Budget 2010 presented in Parliament
On 22 June, Chancellor George Osbourne announced the coalition government's Emergency Budget for 2010.
Key announcements included:
- the introduction of two rates of Capital Gains Tax. While the general CGT rate of 18 % remains unchanged, the government introduced a new higher rate of 28 % for those whose gains, when added to their taxable income, falls into the higher rate income tax bracket. Gains of trustees or personal representatives of deceased persons will be charged at 28 %
- a reduction in Corporation tax by 1 pence in 2011, and then by a further 1 pence for each of the following three years
- an increase in the personal tax allowance for the under 65s. From April 2011, this will increse from £6, 475 to £7, 475
- a possible restriction of pensions tax relief from 6 April 2011. The reformed allowance would replace the high income excess relief charge, currently due to be introduced on 6 April 2010