Pre-Budget Report date set for 9th December 2009
The Chancellor has announced that his much-anticipated Pre-Budget Report will be delivered on 9th December.
In addition to the planned tax hikes which were announced in the last Budget, Alistair Darling is widely expected to either extend the hikes we are already expecting, or introduce new tax raising measures.
Tax increases in April 2010
A new 50% income tax rate is due to hit taxpayers earning over £150,000 from April 2010. Of course, it is possible that the Chancellor may decide to lower the threshold.
The personal allowance will be reduced by £1 for every £2 earned over £100,000, meaning that taxpayers will be paying an effective 60% income tax rate on income between £100,000 and £112,950.
Dividend tax will rise from 32.5% to 42.5% for people earning over £150,000. The current 10% and 32.5% rates will remain unchanged as things currently stand.
As if these hikes weren't enough, the small companies corporation tax rate is also due to rise from 21% to 22% from April. This will directly hit the pockets of most small incorporated businesses in the UK.
The current Capital Gains Tax rate may also rise from 18% to 25% if predictions by several large accountancy firms are correct.
We will update Bytestart with the latest developments and predictions in the lead up to the PBR on 9th December.
For essential tax updates, subscribe to our small business newsletter.Posted November 11, 2009
