Following George Osbornes emergency budget today, 22 June 2010, below are a list of changes that will take affect in the future.
Tax Changes
The standard rate of VAT will rise from 17.5% to 20% from 4 January 2011.
The Personal allowance for under 65’s will rise from £6,475 to £7,475 for the 2011-12 tax year.
Capital Gains tax will also increase from 18% to 28% for higher rate taxpayers.
The government are planning to work with local authorities to freeze council tax in 2011-12.
The threshold at which employers pay National Insurance will increase by £21 per week in April 2011.
Benefits and Tax Credits
The child element of child tax credit will increase by £150 above indexation in April 2011 and £60 above indexation in April 2012.
Families earning more than £40,000 a year won’t get child tax credits from April 2011.
Child benefit rates will remain the same for the next 3 years.
Pensions
From April 2011, State pension will rise by the highest of:
- The average increase in wages.
- How much the cost of living increases.
- 2.5%
New Businesses
New businesses outside the Greater South East will be exempt from up to £5,000 of employer National Insurance Contribution payments for the first 10 employees hired.
