Darling’s 2009 Budget

On Wednesday of this week Chancellor of the Exchequer, Alistair Darling gave the Budget.
We would like to present you some of the main points of the Budget:
• VAT: the VAT rate, now 15%, will return back to the standard rate of 17.5% from 1st January 2010.
• Companies’ loss carry back for business: this will affect all companies making losses from carrying on trades, professions or vocations this is normally referred to as trading losses. This legislation will be introduced in Finance Bill 2009 to extend the ability of businesses to carry trading losses back against profits of earlier years to get a repayment of tax, due to the current turbulence of the financial markets.
• Capital Allowances (Plant and Machinery: Temporary first year allowances): This will most likely affect businesses investing in plant and machinery between April 2009 – April 2010. This legislation also in the Finance Bill 2009 will introduce a new temporary 40% first year allowance (FYA) for the expenditure on plant and machinery that would normally be allocated to the main capital allowance pool.
•Income tax: You will now be taxed a shocking 50% if you earn over £150,000
•Child Benefits: Child Benefits will be increased by £20 by 2010.
So from 2010 your eldest child would get £40.00 and any child after that would get £33.20, and guardians allowance would be £34.10.
• Child trust funds: Trust funds for disabled children would increase by £100 and by £200 for those severely disabled.
•ISA’s: This will affect the savers, as Alistair Darling made the decision to raise the tax-free ISA limit to £10,200, although those over 50 years-old will benefit this tax year. The rest of us will get this benefit the following one.
If you would like to know more about Alistair Darling’s Budget, Taxfile recommends you following this link.