Lloyds misses brunt of £2bn levy on banks June 22, 2010 STATE-OWNED Lloyds Banking Group emerged as the relative winner from an annual £2bn levy on banks’ balance sheets announced yesterday. The tax will apply to British banks and building societies, such as Barclays and the Skipton, and the UK operations of foreign institutions like JPMorgan and Goldman Sachs. From January 2011, banks will be charged [...]
Golden rule replaced by fiscal mandate as OBR cuts short-term growth forecasts June 22, 2010 GORDON BROWN’S golden rule was yesterday scrapped by chancellor George Osborne, who introduced a new forward-looking fiscal mandate and a supplementary debt target. Osborne announced that the structural current deficit should be in balance in the final year of the five-year forecast period, which is 2015-16 in this Budget. He said that the mandate’s structural [...]
THE BANK TAX EXPLAINED June 22, 2010 Q.WHICH INSTITUTIONS WILL THE TAX APPLY TO? A.The levy will be based on the balance sheets of UK?banks and building societies, the UK branches of foreign banks and the foreign branches of UK banks. For example, Société Générale’s operation in London will be hit the same as Barclays Capital’s unit in Paris. Q.WHY IS THE [...]
Double taxes give City a wake up call June 22, 2010 CHANCELLOR George Osborne’s regular bank levy had been anticipated by bulge bracket firms, but City figures nonetheless urged the government to clarify its geographic scope. In particular, banks and accountants were concerned at the prospect of double taxation if France and Germany bring in their own tolls. Rod Roman of Ernst & Young said: “A [...]
High earners see pensions relief slashed June 22, 2010 HIGH EARNERS remain in the dark over how much they will be able to invest for their retirement following yesterday’s emergency Budget. Chancellor George Osborne scrapped new rules due to come into force from April next year – which would have slashed pension tax relief to 20 per cent from 40 per cent for those [...]
Poorest gain but wealthy are hit by rise in tax threshold June 22, 2010 George Osborne raised the income tax threshold to £7,475 from £6,475 pounds in his emergency Budget yesterday. He also lowered the threshold for the 40 per cent rate of income tax by £1,500 from £43,875 to £42,375 from next April. The move means 880,000 low income earners will escape income tax altogether and a further [...]
Osborne’s axe falls on the welfare state as Treasury targets £11bn June 22, 2010 CHANCELLOR George Osborne wielded the axe at the welfare state in a bid to cut £11bn from the welfare state by the end of this parliament. In a move that places strain on the Liberal Democrat members of the coalition, Osborne warned Britain’s spiralling welfare bill would bite £192bn out of the nation’s income by [...]
WHAT DOES THE CHANCELLOR’S BUDGET MEAN FOR YOU? June 22, 2010 KATE SOLWAY, 30 FUNDS CONTROLLER AT PRIVATE EQUITY FIRM COGNETAS Kate is single and lives in rented accommodation. She also owns two investment properties – one a London flat with a mortgage which she rents out, and the other a holiday home under construction in west Africa’s Cape Verde, on which she does not have [...]
Capital spend avoids the axe June 22, 2010 THE CONSTRUCTION and transport sectors were relieved by yesterday’s news that the government will not hack into capital spending Chancellor George Osborne said careful choices would have to be made on what the government will spend on infrastructure. Delivering the emergency Budget, Osborne said: “Well judged capital spending by the government can help provide the [...]
Middle class families to lose right to claim child tax credit June 22, 2010 MIDDLE CLASS families are set to take a hit from reduced child benefits and tax credits as the government bids to support the lower income bracket. In yesterday’s emergency Budget, chancellor George Osborne said the government will freeze child benefit and reduce eligibility for tax credits to families earning over £40,000. The baby element of [...]