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Budget March 2010 - tax changes

  • Published: Friday, 25 June 2010

The Chancellor confirmed tax and National Insurance rates that he had announced in Pre-Budget 2009. He also announced changes to stamp duty. First time buyers won’t pay stamp duty on properties under £250,000, and a new rate of 5 per cent of Stamp Duty is set for £1 million properties. Inheritance Tax is frozen.

Budget 22 June 2010

What is the Budget?

Find out what the Budget does and what takes place on the day

The March 2010 Budget was the final Budget for the last Labour government. George Osborne, Chancellor of the new coalition government, delivered his first Budget on Tuesday 22 June 2010. The new Budget may affect some of the information below. To read about the June Budget, click the orange button.

Tax and National Insurance rates

The Chancellor confirmed current and forthcoming tax bands, allowances and National Insurance rates. Find out the tax rates you’ll pay and the contributions you’ll make by following the link below.

The pre-announced changes include:

  • a new 50 per cent tax rate on incomes above £150,000 from April 2010
  • restrictions on tax relief on pension contributions for incomes of £150,000 and over from April 2011, where gross income incorporates all pension contributions, including those provided by an employer. This is subject to an income floor of £130,000
  • National Insurance contributions for employees, employers and the self-employed will increase by 1 per cent from April 2011 (except for those with incomes below £20,000)
  • a staged removal of personal allowances from incomes over £100,000 a year

Stamp Duty

Budget 2010 announced that first time buyers won’t pay Stamp Duty on residential properties under £250,000. The Stamp Duty ‘holiday’ starts 25 March 2010 for two years.

The Chancellor announced a new 5% Stamp Duty rate for properties over £1 million from April 2011.

Inheritance Tax

The Chancellor has frozen the Inheritance Tax threshold (the level at which you’ll need to pay tax) at £325,000 until 2014.

Capital Gains Tax

The Chancellor confirmed the main rate of Capital Gains Tax stays at 18%.

Small businesses and Capital Gains Tax

The Chancellor announced he would increase to £2 million the threshold when small businesses must pay the main rate of Capital Gains Tax.

He also announced cuts in business rates for small businesses and doubled the annual investment allowance for small businesses to £100,000.

Other taxes

Budget 2010 announces a halving in company car tax for ultra-low carbon cars, for five years from April 2010. The Chancellor confirmed the planned increase of £8 per tonne in the standard rate of landfill tax from April 2014.

The Chancellor announced increases in tobacco and alcohol duties – follow the link below for the new rates.

There are increases in fuel and some vehicle duties – follow the link below for the new rates.

Protecting tax revenues

Budget 2010 describes how the government will make sure people pay their fair share of tax. This includes large penalties for people who deliberately avoid paying tax on offshore investments. The government is working with other countries on this issue.

The government is also looking to regulate ‘tax avoidance schemes’ that help the highest tax payers find ways of paying less tax.

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Budget Day 2011

Budget 2011 on Directgov

Budget June 2010

Full coverage of the new government's first Budget

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