The final Budget of the current Parliament was always expected to be more political than financial in nature, and the speech itself was.
But the usual raft of Budget notices and documents contained some significant changes, particularly in relation to investment, be it in plant, property or new businesses, with increases in the annual investment allowance, a new relief on “green” vans and the extension of the SDLT 0% band for first-time buyers.
Some of the key announcements were:
- An increase in the business annual investment allowance to £100,000 (£50,000).
- Postponement of the planned increase in the smaller companies corporation tax rate from 21% to 22%.
- Introduction of a statutory definition for charities (will impact the Gift Aid scheme).
- ISA limits confirmed at £10,200 / £5,100 (cash) for 2010/11 and set to rise by RPI during the course of the next Parliament.
- Changes to VCT and EIS regulations.
- Increased penalties for late payment.
- Capital gains tax entrepreneur's relief doubled to £2 million.
- Inheritance tax nil rate band frozen at £325,000 until 2014/15.
- Stamp duty land tax increased to 5% for residential transactions with a value in excess of £1 million (applies where the effective date, normally the completion date, is on or after 6 April 2010).
- Two year period of nil SDLT for first-time buyers buying, for less than £250,000, their only or main home.
Many of the above announcements are wrapped around with restrictions and provisos. More importantly, they will only come into law when voted through by Parliament. As the number of sitting days remaining before the election can be counted on the fingers of one hand there is no certainty about what will get through in the "wash-up" period before the dissolution of Parliament.
And of course the Conservatives have promised a new budget within 50 days if they are elected, so some uncertainty at the moment. Watch this space.
