Budget 2010: All the key points you should know by sector

Author: IFAonline
IFAonline | 24 Mar 2010 | 12:56

Categories: Better Business

Topics: Poland| Alasdair Buchanan| Budget 2010

budget-briefcase

Here are all the key facts from today's Budget arranged by area.

Investment

From next month, annual ISA limit will rise from £7,200 to £10,200 and ISA limits will then increase annually in line with inflation.

The DMO will issue more longer-dated gilts to support pension funds.

Changes to taxation of UK-authorised investment funds to allow UK to compete with offshore centres.

Financial Services & Banking

Bank accounts accessible for all.

Banks bonus tax raised £2bn and will help fund scheme to encourage SMEs.

A new green investment bank, which will control £2bn worth of equity.

RBS and Lloyds will provide a total of £94bn of new business loans, nearly half to SMEs

Darling insists "A strong financial services industry is essential for our economy."

Northern Rock and B&B to merge.

The economy

Inflation target remains at 2%

Chancellor will bring his growth forecast for 2011 in line with that of the Bank of England, to growth of between 3 and 3.5%

Borrowing this year should now be £11bn lower than forecast, at £167bn - a reduction in the deficit from 11.8 per cent of GDP to 5.2 per cent, more than halved over a four year period.

Tax

50% income tax rate comes in for those over £150,00pa.

1p increase in NI contributions to be waived for those earning under £20,000.

IHT thresholds frozen for four years.

Entrepreneurs' relief for Capital Gains Tax will be doubled to £2m on which the lower rate of 10% will be taxed.

Drive to prevent avoidance and evasion. Government to sign tax disclosure deals with Dominica, Grenada and Belize.

Business rates cut for one year from October.

Pensions

Tax relief restrictions remain on pensions contributions.

Tax credit support for older workers to be extended. Government will reduce the minimum hours over-60s need to work to be eligible.

Every pensioner guaranteed weekly income of £132.60.

Nobody over 75 will pay tax on first £10,000 of pensions income.

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