The last Pre-Budget Report before the General election was delivered by Chancellor Alistair Darling on Wednesday (December 9th). This introduced some new measures and confirmed some previously announced measures
How does it affect you?
- National Insurance Contributions will rise by a further 0.5% for both the employed and the self-employed from April 2011. This is in addition to the increases for 2011 announced in last year’s Pre-Budget. Employers contributions will also rise by 0.5%
- The personal allowance levels for income tax will remain unchanged and in 2012 the point at which individuals pay tax at 40% will be frozen for a year
- The Inheritance Threshold has been frozen at £325,000 and will not rise to £350,000 as previously announced
- VAT will go back to 17.5% as planned on 1st January 2010 from its temporary figure of 15%.
- The Stamp Duty Holiday on property purchases comes to an end as expected on 31st December when Stamp Duty will be levied on properties costing £125,000 or more and not £175,000 as at present
- The much publicised Bankers Bonus Tax will mean that banks need to pay 50% tax on any bonuses above £25,000 they pay to their staff between now and next April
A broadband tax of 50p per month is being introduced
