Pre-Budget Report 2009 - more questions than answers?
While keeping well away from significant across the board tax
changes before an election, the Government's Pre-Budget Report 2009
contains plenty to mull over. Higher earners in general and
bankers' with bonuses in particular have confirmation that they
will feel the tax squeeze first. However, a 1% increase in all
National Insurance Contributions from April 2011 means that anyone
earning over £20,000 will feel the pain.
There is also the threat of an eye-watering 200% penalty for
people who do not disclosure UK tax liabilities from offshore bank
accounts.
Businesses received some cheer with the deferral of the small
companies corporation tax increase, meaning the rate stays at 21%
next year. There is also a new low 10% rate on its way for income
from certain patent rights but sadly this will not apply until
2013.
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