Home > Useful Information > Budget reports > Budget Report - 22 June 2010 > What Happened to the 24 March Budget?

Budget report 22 June 2010

What Happened to the 24 March Budget?

On 24 March 2010, Alistair Darling MP presented his last Budget as Chancellor of the Exchequer before the general election. The tax provisions he announced were summarised in 71 Budget Notes issued on the same day.

 

Some of those Budget provisions became law in Finance Act 2010 which received Royal Assent on 8 April 2010. As is normal in a general election year, the Act contains only those provisions which also have the support of the opposition party. The remaining Budget provisions will be enacted in a Finance (No 2) Act 2010 to the extent that the new Government agrees with the provisions. These will be supplemented by the new Government’s own proposals announced today.

 

These Budget changes are included in Finance Act 2010:

• new rates for income tax, personal allowances, and corporation tax
• increase in VAT thresholds
• introduction of bank payroll tax
• doubling of entrepreneurs’ relief from £1 million to £2 million
• doubling of annual investment allowance from £50,000 to £100,000
• changes to excise duty (except for cider), climate change levy, landfill tax and other duties
• relief from stamp duty land tax for first-time buyers for properties up to £250,000
• restriction on pension tax relief on earnings above £130,000
• restrictions on sideways loss relief, property loss relief, and capital allowance buying
• extending charity tax relief for donations to European bodies
• provisions relating to release of loans to participators in close companies
• reduction in taxable benefit for employees with very low emission cars.

The following Budget proposals are not included in Finance Act 2010:

• tax provisions for National Employment Savings Trusts (NESTs), though these are still due to be introduced in 2012
• relaxation of the “generally available” condition for tax-free employer-supported childcare
• new provisions regarding capital distributions and worldwide debt cap
• changes to capital schemes needed to comply with European law
• allowing real estate investment trusts (REITs) to issue stock dividends
• changes to HM Revenue & Customs powers in relation to late payment of income tax
• 100% capital allowance for zero-emission vehicles
• VAT changes relating to aircraft, postal services and place of gas supply
• introduction of landline duty.

Of the 71 Budget Notes, all have been implemented by the Act or Treasury Order except numbers 5, 6, 8, 12, 13, 19, 20, 22, 29, 30, 35, 36, 37, 42, 46, 47, 48, 50, 51, 54, 57, 65, 66, 67 and 69.

 

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

© 2012 McAllen and Co | What happened to the 24 March budget?

Sitemap | Locations | Web Design by Mistera