Emergency Budget 22 June 2010: The main tax changes affecting individuals
22nd June 2010
Capital gains tax from 23 June 2010
A new 28% rate is introduced.
For individuals, however, the rate remains 18% insofar as total taxable gains and income are less than the upper limit of the income tax basic rate band. (This lower rate does not apply to trustees and personal representatives of deceased persons.)
The rate for gains that qualify for entrepreneurs' relief remains 10%. The lifetime limit on gains qualifying for entrepreneurs' relief is increased from £2 million to £5 million.
Increased personal allowance for basic rate taxpayers from 6 April 2011
From 6 April 2011 the personal allowance for those aged under 65 will be increased by £1,000 to £7,475. The level of income at which tax ceases to be charged at the basic rate and starts to be charged at the higher rate will be reduced, however. As a result higher-rate taxpayers will not benefit from this increase.
The upper earnings limit for National Insurance ("NIC") purposes will be reduced so that it remains the same as the upper limit of the income tax basic rate. At first sight this will reduce the NIC liability because the rate of employee contributions will drop above that limit.
