There were few surprises and on the whole this was a good Budget for small businesses and entrepreneurs. There were no further bombshells for higher earners in terms of direct taxation although there is a stealthy increase in Inheritance Tax (via the nil rate band being frozen for the next four years) and a new top rate for Stamp duty. Read my Budget highlights below.

How will the 2010 Budget affect you or your business – call me on 01344 620495 or email your enquiry

Read the full Budget 2010 Report here

Individuals

• Personal allowances still being withdrawn from April 2011 for those earning £100,000 or more
• No changes to 50p income tax rate rise from this April
• No change to Pension restrictions affecting those earning £130,000 or more
• No further increase to National Insurance due to rise 2010/11
• Income tax rates frozen for non high-earners
• Freeze on Inheritance Tax for a further four years
• Increase in ISA allowance from £7,200 to £10,200 from April
• Stamp duty waived for first time buyers up to £250k for two years
• Stamp duty increased to 5% for those purchasing £1m homes

You and your business

• Capital Gains tax remains at 18% (for now) but planning in this area is strongly recommended as I still anticipate this party coming to an end sooner rather than later!
• More relief for Entrepreneurs when you come to sell - doubling of relief which means you only have to pay 10% tax on first £2m of business assets disposed of.
• No change to 21% Corporation tax rate which is good news for businesses
• Time to pay tax scheme extended to next parliament
• Reduction of business rates from October means lower tax for small to medium sized businesses
• New UK Finance for Growth company overseeing financial support and funding for businesses. Includes new funding for fast growing businesses
• Doubled Investment Allowance for small businesses which means up to £100k of capital expenditure can be relieved in the year of purchase – get spending.