Well despite the economic turmoil the Chancellor has managed to delivery a budget that appears to be relatively neutral, except for the highest earners.
Here are the high points (or low points depending on your perspective).
- Tax on alcohol and tobacco, and fuel duty all up.
- Scrappage scheme introduced to provide a £2,000 incentive to trade in 10 year old cars and buy new ones.
- 50% income tax rate to be introduced in April 2010 for people earning more than £150,000.
- Tax relief on pensions reduced for people earning more than £150,000 by April 2011.
- Over 50s get a rise in the annual limit for tax-free ISAs to over £10,200 in April 2010.
- Forward investment encouraged as the capital allowance rate doubled to 40%.
- Extension of the carry back period for losses introduced. Offers the potential for loss-making companies to reclaim taxes paid in the last three years through tol November 2010.
The Lewis Smith and Co. perspective is that the devil is in the post dated detail! This government has become a past master at setting budget time-bombs that are primed to go off well in the future and work in combination with very reasonable sounding measures to create rather more menacing fiscal monsters.
We will keep you posted as we spot them.
To find out how Lewis Smith & Co. can help you make understand the impact of the budget on your business then give us a call on 01384 235549 or email at firstname.lastname@example.org