TaxPenny News

Alistair Darling revealed his Pre-Budget Report at 12:30 PM today. VAT will be going back to 17.5% from January 1st as expected. Small companies benefit from a deferment in the increase of corporation tax. He’s added a 10% corporation tax for income from patents in the UK and wants to charge banks 50% on any bonus above £25,000.

Key breakdowns:

1. Time to Pay scheme for businesses will be extended for as long as it is needed.
2. Stamp duty holiday would end in January. He also announced the extension of a scheme to help people facing repossession for a futher six months.
3. £160m of public and private investment in low carbon projects.
4. An extra £200m will be available to promote energy efficiency in homes.
5. People who sell power to the national grid will be able to do so tax free.
6. Drivers with electric cars will be exempt from car tax for five years.
7. Plan to impose a duty on landlines to finance the extension of broadband.
8. 50% tax on any bonus worth more than £25,000. That will be paid by the bank, not the individual.
9. Scrapping top rate tax relief for pension contributions. This will only affect those earning more than £130,000.
10. Inheritance tax threshold will be frozen at £325,000.
11. Senior civil servants pay will be cut by £100m.
12. From 2011 for two years all public sector pay settlements will be capped at 1%. But the armed forces will be exempt.
13. Increase employer/employee national insurance from April 2011 by 0.5%. But the starting point will also increase, so no one earning under £20,000 will be liable to NI.
14. Extend free school meals to 500,000 children.