EMERGENCY BUDGET 2010 SUMMARY

- Rates and Allowances

Income tax rates and allowances

From 6 April 2011, the personal allowance for under -65s will be increased from £6,475 to £7,475. In order that higher rate taxpayers do not also benefit from the increase in the personal allowance the basic rate limit will be reduces. The exact figure for the basic rate limit will be confirmed in the autumn statement.

Corporation Tax

The main rate of corporation tax will be reduced to 27% from 1 April 2011 and will decrease by 1% each year thereafter to 24% by 2013. The small companies' rate of tax will be reduced to 20% from 1 April 2011. The upper and lower limits for profits at which the main and small company rate is paid will remain at £1.5m and £300,000 respectively. Ring fence profits will still be taxed at 30% (19% for a small company)