News

22 June 2010 – Coalition Government Emergency Budget

Key Implications for Property

• Anyone paying 40% higher rate income tax will be charged 28% on Capital Gains on all disposals after 23 June 2010. Rate remains at 18% for lower rate tax payers. Annual exempt amount to remain at £10,100 and to be inflation linked.

• Life time limit for Entrepreneurs Relief extended from £2M to £5M. This means entrepreneurs pay CGT at 10% on selling a business up to this level.

• VAT to increase to 20% from 04 January 2011.

• Stamp Duty to remain unchanged, 5% levy on residential properties over £1M sold 06 April 2011 introduced by Labour retained.

• Main Rate Corporation Tax to be reduced. 24% from 28% over 4 years. Small profits rate reduced to 20% from April 2011.

• New 50% tax on annual Income over £150,000 retained.

• Single Years Rates Holiday for rate payers entitled to Small Business Relief with Rateable Value under £6,000 (outside London) from October 2010. Phased relief up to £12,000 Rateable Value. Anticipated to be as proposed by Labour.

• Regional Development Agencies (RDA) to be abolished and replaced with local enterprise partnerships based around major cities with more directions from locally elected leaders.