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:
- Time to Pay scheme for businesses will be extended for as long as it is needed.
- 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.
- £160m of public and private investment in low carbon projects.
- An extra £200m will be available to promote energy efficiency in homes.
- People who sell power to the national grid will be able to do so tax free.
- Drivers with electric cars will be exempt from car tax for five years.
- Plan to impose a duty on landlines to finance the extension of broadband.
- 50% tax on any bonus worth more than £25,000. That will be paid by the bank, not the individual.
- Scrapping top rate tax relief for pension contributions. This will only affect those earning more than £130,000.
- Inheritance tax threshold will be frozen at £325,000.
- Senior civil servants pay will be cut by £100m.
- From 2011 for two years all public sector pay settlements will be capped at 1%. But the armed forces will be exempt.
- 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.
- Extend free school meals to 500,000 children.
