Non-doms escape major crack-down in Budget June 22, 2010 NON-DOMS breathed a sigh of relief yesterday as the Budget fell short of the tough new tax avoidance measures some had been expecting. Chancellor George Osborne’s Budget said the coalition will “assess whether changes can be made to the current rules to ensure that non-domiciled individuals make a fair contribution to reducing the deficit, in [...]
Corporation tax cut to a new UK low June 22, 2010 CORPORATION tax is to be cut by four per cent to 24 per cent – a rate George Osborne claimed as the lowest of any major Western economy. The chancellor said he wants “a sign to go up, over the British economy, that says: ‘Open for Business.’” The tax for businesses with profits over £1.5m [...]
City gives lukewarm thumbs up to Osborne’s plan June 22, 2010 CITY stalwarts displayed cautious approval in the wake of the emergency Budget yesterday, as the chancellor’s plans settled some nerves over UK spending. CBI director-general Richard Lambert said the five-year route map for corporation tax “provides much-needed consistency and certainty”, which combined with proposals on foreign profits and intellectual property could reverse the tide on [...]
Public spending slashed by Osborne June 22, 2010 CHANCELLOR George Osborne yesterday lived up to his promise of an austerity Budget and announced sweeping tax hikes and spending cuts to regain control of the spiralling public finances. According to the independent Office for Budget Responsibility (OBR), the measures outlined yesterday should see public sector net borrowing fall from £149bn in 2010-11 to £89bn [...]
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 [...]
