Pre-Budget Report 2009 - key points for private clients
The Chancellor has just sat down after presenting his 2009 Pre-Budget Report. We are awaiting the details being released on the Treasury website but the key points from his speech for private clients appear to be:
- VAT will return to 17.5% on 1 January 2010
- Stamp Duty holiday will end on 1 January
- The time to pay scheme will continue for as long as needed
- State pensions will rise by 2.5% from next April. Child benefit will also rise
- A new boiler scrapage scheme for 125,000 households plus extra energy efficiency help
- 50p tax on landlines to finance superfast broadband
- 50% one off levy on bankers’ bonuses over £25,000 paid by the bank in addition to the tax paid by the employee
- Freezing of Inheritance Tax Nil Rate band at £325,000
- Freezing higher rate tax threshold
- Anti avoidance measures following on from the information received from offshore banks
- National Insurance starting threshold raised.
As is invariably the case there will be more important changes buried in the detail of the documentation. More information will be posted during the afternoon.
Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.
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