Usually Budgets are like Christmas and come but once a year!
This year, of course, we now have another “emergency” budget on the 22nd June.
And, again, similar to Christmas, we have some ideas of what could be lurking under the lovely wrapping paper.
Here in summary is the expected announcements on the 22nd;
Capital Gains – currently 18% (with a 10% entrepreneurial relief rate) is expected to be increased to 40% or 50%. Again, we do expect there to be some relief on capital gains arising from sales of business assets but how this will work has not yet been made clear.
Personal Allowances - this is the amount that an individual can earn tax free. The allowance for 2010-11 has been frozen at the 2009-10 level on the basis of both low interest and inflation rates. We expect the emergency budget to announce an increase in this allowance from April 2011 and to make a long term commitment (notice no dates mentioned here) to a level of £10k.
National Insurance - the planned increase of 1% for both employees and employers national insurance will go ahead.
We plan to announce all key changes from the emergency budget in our Summer Newsletter.