Summaries of
measures
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The Chancellor delivered his Pre-Budget Report on
Wednesday 9 December.
Business will welcome some PBR measures - the new
patent box, whereby income from new patents granted
from 2013 will be taxed at 10% and the announcement
of consultation on a foreign branch exemption.
The extra ½% hike in national insurance rates for
employers, employees and the self-employed from 2011
will not be appreciated. This - combined with the
2008 announcement - will mean a 1% charge, raising
about £7 billion in 2011-12 and subsequently.
Individuals will see tax allowances and thresholds
frozen at 2009-10 levels - so no pay boost in April
2010. National insurance rates and thresholds are
also unchanged. The state pension will rise by 2.5%
from April 2010 - meeting the guarantee to increase
pensions by the lower of RPI and 2.5%. Other
benefits and credits will rise by 1.5%.
The much-heralded bank bonus tax applies to bonuses
over £25,000 payable from today to 5 April 2010. It
covers individuals engaged in banking business
(including building societies) and will be charged
at a 50% rate. Taking account of the levy, national
insurance and income tax, bonuses will bear an
effective 68% tax. It supports the G20 measures on
bank pay to defer bonuses.
Finally, the Chancellor confirmed that VAT will go
back to 17.5% from 1 January 2010.
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Read the views of our experts on Alistair Darling's
announcements in the Pre-Budget Report
PBR measures
In-depth analysis for measures relating to:
