Pre Budget Report PDF Print E-mail
Blog and News - Economy
Written by John Angeletta   
Wednesday, 09 December 2009 17:22
Pre-Budget Report ~ Headlines

1. Stamp Duty Land Tax 'Holiday' to end 31st December '09, returning threshold to £125,000 (down from £175,000)

2. Home Owner Support extended a further 6-mths

3. Inheritance Tax 0% threshold held at £325,000

4. VAT to return to 17.5% from 1st January 2010

5. Empty Property Relief extended to 2011

6. Bankers' bonuses over £25,000 will be subject to a one-off 50% tax deducted by the employer

7. Basic State Pension will rise by 2.5% in April

8. The Chancellor expects a return to growth in Q4 but admitted that over 2009 as a whole, the UK economy is expected to have contracted by 4.75%

Source Mortgage Solutions

What We Say ~ 

1. This was a saving of £1750 i.e. 1% up to £175,000 (not massive, but significant)
2. Chancellor claims 220,000 'people' helped to date (less than 1% of current unemployed)
3. Threshold could have risen by £25,000 effectively saving £10,000 of death tax against an estate value of £350,000
4. Adds back 2.5 pence in the pound to VATable purchases
5. Applies to non-residential property only
6. Board to Banker says, "I suppose you could pay the £487,500 tax on your million pound bonsus for this year or we could pay you £25,000 and hold over your £975,000 until next year.  What do you say?"
7. Up to £3.80 for a married couple
8. I'm lost for words!

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