Scheduled 22 June 2010:

http://www.hm-treasury.gov.uk/press_03_10.htm

PD

... commencing 12.30pm:

http://www.hmrc.gov.uk/budget2010/index.htm

PD

'2010 Budget ... Follow all the latest news here'

http://www.hm-treasury.gov.uk/2010_june_budget.htm

Watch the speech:

http://www.parliamentlive.tv/Main/Player.aspx?meetingId=6369...

PD

I am on the sofa with my beer and crisps, PD ;-) Whatever the Budget is like, it can't be any worse than the football.

T

This VAT rise is going to hurt! I was expecting a 0.5-1% rise but 2.5% seems huge, but hey no duty rises on petrol/alcohol/tobacco to sweeten it until they report back later in the year and increase it anyway!


Grr



H


x

This VAT rise is going to hurt! I was expecting a 0.5-1% rise but 2.5% seems huge,

It was what I was expecting, and 20% is so much easier to work out as well :-)

I didn't notice much difference with the drop to 15% last year, nor the increase back up to 17.5% this year, to be honest, so I don't think another increase will be that noticeable (so long as they don't keep increasing it!).

Ronnie

Did I hear right that it is likely that the retirement age will be raised in the near future?

This would certainly save some spending on "boom baby" pensions now coming due, at the same time keeping those in work still paying income tax.

When does the VAT rise take place Ronnie? I'm in my shop and not able to watch TV or listen to the radio. For small shopkeepers with individually priced stock all VAT changes are a nightmare whether it is up or down,

Lynn

It is not until January. We shall just have to spend lots of money now instead of later. Sounds good to me :o)

T

The VAT rise is from January so you have time.

VAT rise is "Next year"

Jan 4th 2011 Lynn - plenty of time to get organised, again :-)

Ronnie

Did I hear right that it is likely that the retirement age will be raised in the near future?

From BBC's At A Glance:

"The government will accelerate the increase in state pension age to 66. "

That's the only reference I can find to it - don't know when the original increase was supposed to come in.

Ronnie

Thanks for information about timing of VAT rise folks. You'd have to be a small shopkeeper to understand just how much this matters. Early January is the best of all possible dates for most shops as your stock is run down after the Christmas Season and you are changing many prices for January sales in any case + you are less busy.

I was panicking that I wouldn't be able to go home tonight and would be here re-programming the Cash Register and trying to write notices to explain that many items would be 2.5% more than their marked price.

Early January I can cope with,

Lynn

From BBC's At A Glance:

"The government will accelerate the increase in state pension age to 66. "

That's the only reference I can find to it - don't know when the original increase was supposed to come in.

Ronnie

Thanks Ronnie.

I'm 62, and was looking forward to being able to wind down a bit at 65.(No private pension) so it looks like I'd better postpone my plans for another year.

Cheers,
Bob

I wouldn't worry at age 62. It was going to be raised to age 66 for those currently under 51. It will likely be changed to those currently under 55 so no one gets less than 10 years' notice.

Thanks for that Bullshare.

Maybe not so bad then. We shall see.

Bob

Does anyone know if the public sector pay freeze includes already negotiated 3-years (etc) deals - such as the teachers who had year 1 last year, NHS who I think this would be year 3, and so on?

Or, are those being scrapped?

Be interesting if they are, unions will go nuts.

And, if they are not, then that is tens of thousands of public sector staff unaffected by the 'freeze' and I think it should be mentioned!

Also, was that George's wife next/slight;ly behind him, as they usually have their wives with them but I'm not sure I have seen his wife before?

Other than VAT (and obviously potential job loss, which we all face one way or another really) I can't see it has much effect on me. The 1% NI, freezing 40% tax band - but surely I gain a bit from the increase in tax-free allowance. Fuel is my major cost.

If they really think this will help keep interest rates low then that's good for me overall in that I have a mortgage (though it is bad for the savings).

Mel

Hello Melon

If you are a higher rate taxpayer you will probably not gain from the increased personal allowance as the basic rate band is being reduced to cancel out the pa increase :(

http://www.hmrc.gov.uk/budget2010/bn01.pdf

Does anyone know if the public sector pay freeze includes already negotiated 3-years (etc) deals - such as the teachers who had year 1 last year, NHS who I think this would be year 3, and so on?

I can confirm for NHS 3-year deal - the 3rd instalment has already been paid from April 2010, so is unaffected by the new 2-yr freeze.

Little White Lie on CGT.

"Basic rate taxpayer will be unaffected as will still be 18%"

But as I understand it 20 years accumulated gain on a buy to let house gets the whole gain added to income in the year of disposal ( after 10K allowance) with no indexation or duration tapering.

So imagine someone who has never been a HR taxpayer in their life and bought a buy to let house for £50K aged 60, now flogging it at 80 to release the cash and cut the hassle. They may have seen the value go from say £50K to £130K over 20 years ( 5% compound ) if they have occ and state OAP pensions of say just £20K, they will get clobbered for HR CGT on around £45K.

So much for NO CGT Increase for Basic Rate Taxpayers.

Binalurkin

I would say if someone has a capital gain of 80k in a particular tax year then they are classed as a higher rate taxpayer in the year, i don't see anything strange about this statement.The "tax at your appropriate rate of tax approach" is no different in principle to how the system worked up to a couple of years ago (albeit their was taper relief available back then)

The individual concerned will have know there was a capital gains liability coming at some stage and they have had plenty of time to think of ways of minimising any tax liabilites during this period.

One thing is normally a given with capital gains is that the rates and rules will change again at some future stage, the trick is to do some research and take all reasonable steps to minimising liabilities where possible.

An alternative would be to tax people every year on any notional gains they have had on the increase in value each year this would spread the gains on a more equal basis, just imagine how poular or unpopular an approach like this would be.

Hmm, the teachers' one has been confirmed now as well.

So, NHS biggest employer in Europe, gets the pay award, as do teachers.....I wonder who esle has a 2 or 3 deal midway.

Make the 'pay freeze' look a little like window dressing doesn't it?

Mel