Some major tax changes come into affect from 6 April 2010 that had been announced in previous Budgets. From April 6, there is a new higher rate of income tax set at 50 per cent on earnings above \u00a3150,000. In addition income tax allowances and bands will be frozen \u2013 meaning that everyone will pay more tax on their earnings if they receive a pay rise.<\/p>\n
Following Budget 2010 we have provided answers to some of the most asked questions we\u2019ve received from clients.<\/p>\n
Q: I\u2019m a first time buyer \u2013 what help was announced to help me get on to the property ladder? Q: We\u2019re currently looking to sell our house valued at \u00a31.4m \u2013 how will Budget 2010 impact on the sale? Q: Following Budget 2010 \u2013 will we need to review our current inheritance tax planning provisions? Q: I\u2019m an entrepreneur and plan to sell my business within the next year \u2013 how will Budget 2010 affect me? Q: I\u2019m a small business owner \u2013 were there any good news announcements in Budget 2010 for me? Q: I earn \u00a350,000 \u2013 how will my income be affected by Budget 2010? Q: I\u2019m aged 42 and want to take out an Individual savings Account (ISA) \u2013 is it correct that I will be able to save a higher amount? Q: I currently receive pension tax relief \u2013 following Budget 2010 will it be limited? Q: We are over 80 \u2013 what did Budget 2010 mean for us? You and your finances Some major tax changes come into affect from 6 April 2010 that had been announced in previous Budgets. From April 6, there is a new higher rate of income tax set at 50 per cent on earnings above \u00a3150,000. In addition income tax allowances and bands will be frozen \u2013 meaning… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/779"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=779"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/779\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nA: <\/strong>For two years commencing from 25 March 2010 stamp duty has been scrapped on home purchases made by first-time buyers on properties worth up to \u00a3250,000. Couples buying homes jointly where one partner has previously bought a property will not be eligible even if the other partner is a first-time buyer.<\/p>\n
\nA:<\/strong> If you are able to sell your house before 5 April 2011, you will not be subject to the stamp duty increase announced, however after this date the stamp duty rate payable on a property purchase of more than \u00a31 million will increase from 4 per cent to 5 per cent.<\/p>\n
\nA: <\/strong>The pledge to increase the inheritance tax threshold (IHT) to \u00a3350,000 will now not take place – the Chancellor announced he was freezing the current threshold of \u00a3325,000 for the next four years. The freezing of the IHT band for a further four years could cost a couple an additional \u00a337,000 in IHT in real terms. If the value of your estate increases further and falls outside of your current IHT provisions, it makes sense to seek professional advice and review your particular situation, especially if the value of your estate increases considerably over the next four years. Freezing the IHT threshold for another four years will mean more families may need to consider estate planning opportunities by maximising reliefs and exemptions.<\/p>\n
\nA: <\/strong>The Chancellor confirmed that the rate of capital gains tax (CGT) will remain at 18 per cent. However, the annual amount of gains exempt from the tax is to be frozen at \u00a310,100. The good news is that for entrepreneurs from April 2010, your will only have to pay 10 per cent on the first \u00a32 million of capital gains. Depending on the value of your business, this could save you up to \u00a380,000 when you sell.<\/p>\n
\nA: <\/strong>At the centre of this Budget was a \u00a32.5bn package for small and medium – sized businesses. Business rates will be cut for a year from October and the investment allowance for small firms will be doubled to \u00a3100,000. Measures announced for small businesses aimed at assisting cash flow, included the extension of HMRC\u2019s \u2018Time to pay\u2019 scheme. This scheme supports companies in distress struggling to pay their tax bills. The Chancellor has also ordered state-funded banks RBS and Lloyds TSB to provide \u00a394 billion in small business loans, and he has created a new credit adjudication service for business owners who feel they have been unfairly rejected for credit.<\/p>\n
\nA:<\/strong> As previously announced, the Chancellor has decided to freeze all income tax bands, which will lead people to pay more tax on their earnings. There will be a 0.5 per cent increase in National Insurance contributions from 6 April 2011. The threshold at which you start paying tax at 40 per cent will remain at \u00a343,875 for the 2010\/11 tax year. This could mean you end up paying an extra \u00a31,248 a year based on a \u00a350,000 annual salary. The top rate of tax for people earning more than \u00a3150,000 is 50 per cent, up from 40 per cent, commencing 6 April 2010.<\/p>\n
\nA: <\/strong>The Chancellor had already announced that the total ISA limit for everyone would increase to \u00a310,200 from 6 April 2010. Depending on your attitude towards risk for return, on or after this date you could put all of your money into a stocks and shares ISA, or alternatively put up to \u00a35,100 (previously \u00a33,600) into a cash ISA, with the remainder available for stocks and shares. The Chancellor also announced that from 6 April 2011, the ISA limits would increase in line with inflation for every year of the next parliament. The level of the increase will be set by the level of the Retail Price Index (RPI) the preceding September.<\/p>\n
\nA: <\/strong>It really depends on your level of income. If you earn over \u00a3130,000, the Chancellor confirmed that tax relief on pension contributions will be restricted from 6 April 2011. If your pre-tax income (including your own pension contributions) is less than \u00a3130,000 you will not be affected. Previously, up to 100 per cent of an employees\u2019 salary could be paid into a pension tax-free. In an extensive report on the proposed changes, the government said: \u2018It is neither fair nor sustainable in the current fiscal context to offer the greatest incentive to save in a pension to those who need it least. \u2018For these reasons, the government has acted to address the disproportionate levels of relief going to individuals on the highest incomes\u2019. The rate of relief will be tapered down so that those on incomes of \u00a3180,000 and over will receive relief at 20 per cent, the same rate as a basic-rate taxpayer.<\/p>\n
\nA: <\/strong>Last year\u2019s temporary increase to the winter fuel allowance was renewed for another year. This means each household with someone over the female state pension age will receive \u00a3250, and each household with someone over the age of 80 will receive \u00a3400. The Chancellor is also making it easier for over 60s to claim working tax credit by cutting the number of working hours needed to qualify.<\/p>\n","protected":false},"excerpt":{"rendered":"