Tax
Budget response: Tax |
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| Tax | |
| Written by Gary Howes | |
| Wednesday, 24 March 2010 | |
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Reaction starts rolling in on the 2010 budget.
What are the tax implications of the 2010 budget? "Instead the Chancellor's budget was largely political . He has resorted to the popular measure of being tough on tax avoidance, in particular the news that new tax information exchange agreements are to be entered into. "The temporary removal of SDLT for purchases of residential property below £250,000 was predicted although may not in reality have much impact on the housing market, but the increase to 5% SDLT for residential purchases above £1m to pay for this looks political and it will be difficult for the Tories to remove it, if they win the next Election, as such removal would appear to favour only the very well-off in difficult times. "Avoidance schemes to avoid such SDLT must be disclosed. "Otherwise, the tax relieving measures announced today don't look likely to make much difference, good or bad, although the doubling of the annual investment allowance, and the CGT entrepreneurs relief, and the reduction in business rates for a year from October, will benefit small businesses and their owners. "In truth, this was a phoney Budget. "We must wait for the post-election Budget, or more likely next year, for the really hard hitting changes. "VAT is likely to rise to 20%, the EU average, and notwithstanding the constant tinkering with CGT, it seems unsustainable for the CGT rate to remain at only 18% with the top rate of income tax at 50%, thereby distorting income and capital transactions."
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