Wednesday April 22, 04:21 PM
FACTBOX-Main British budget measures
LONDON, April 22 (Reuters) - British finance minister Alistair Darling delivered his annual budget on Wednesday. Here are the key measures unveiled.
INCOME TAX
- New 50 percent income tax rate for
people earning more than 150,000 pounds a year to start from April 2010 - a year earlier than planned and higher than the 45 percent proposed in November.
- From 2010-11, tax-free allowances for people earning more than 100,000 pounds will be gradually reduced to zero.
- From 2011, tax relief on pensions contributions will be restricted for those with incomes of 150,000 pounds and over, and tapered down until it is 20 percent
SAVINGS
- Increase in the annual limit for Individual Savings Accounts (ISA) for people aged 50 and over from October 6 this year to 10,200 pounds, of which 5,100 can be cash. All ISA savers will qualify for the new rate from April 6, 2010.
BUSINESS CAPITAL ALLOWANCES
- The main capital allowance rate will be doubled to 40 percent for one year starting this April.
EMPLOYMENT FUNDING
- Extra 1.7 billion pounds of funding to support the unemployed.
- From January 2010 everyone under the age of 25 who has been out of work for 12 months, will be offered a job or a place in training.
- Maximum state redundancy pay to rise to 380 pounds from 350 a week.
PENSIONERS
- From autumn, the assessment exemption limit of pensioners' savings will rise to 10,000 pounds from 6,000 pounds. This applies to their entitlement to pension credit, housing benefit and council tax benefit.
- Pension credit recipients who may have overpaid tax on their savings income in the past 6 years will be contacted as part of a tax-back campaign. Those who claim are expected to receive around 200 pounds on average.
WINTER FUEL PAYMENT
- An extra payment alongside this year's Winter Fuel Payment, worth 100 pounds for households with someone aged over 80 and 50 pounds for households with someone aged over 60.
WELFARE
- The child element of the Child Tax Credit to increase by 20 pounds from April next year.
- Extra 100 pounds for child trust fund vouchers for new babies with disabilities, extra 200 pounds for those with severe disabilities.
GREEN MEASURES
- 525 million pounds funding for offshore wind over the next two years under the Renewables Obligation scheme.
- 375 million pounds for energy and resource efficiency in business, public buildings and households.
- 405 million pounds to support development of low-carbon and advanced green manufacturing sector in the UK.
- 60 million pounds to fund engineering and design studies for carbon capture and storage.
- 70 million pounds to support decentralised small-scale and community low-carbon energy.
CAR SCRAPPAGE SCHEME
- Motorists can apply for a 2,000 pound discount on a new car when they trade in cars more than 10 years old until March 2010. The measure is worth 600 million pounds with the government putting up half and the rest matched by participating manufacturers.
ALCOHOL & CIGARETTE DUTIES
- Alcohol and cigarette duty will both rise by 2 percent at midnight and 6 pm on Wednesday respectively.
FUEL TAX
- The government said it would continue to monitor fuel prices but Darling said he expected that fuel tax will rise by 2 pence a litre in September and by 1 pence a litre above indexation a year every April every four years.
PROPERTY TAXES
- Extension of the Stamp Duty holiday on properties sold for less than 175,000 pounds until the end of the year.
LANDFILL TAX
- 8 pound increase in landfill tax to 48 pounds a tonne from April 1, 2010.
TRADE CREDIT INSURANCE
- Under a 'top-up' trade credit insurance scheme, the government will offer to top up private sector trade credit insurance provision if insurers reduce cover from any business operating in the UK.
- Cover will be time-limited and capped at 5 billion pounds.
GAMING
- Removal of VAT on participation fees (those levied by gaming operators on players) for playing bingo and other games of chance from April 27 this year.
- Increase in the money prize limit to 70 pounds from 50 pounds for bingo duty exemption that can be offered on small scale amusements at family entertainment centres and gaming centres.
- Increase in bingo gaming duty to 22 percent
(Reporting by Frank Prenesti. Editing by Mike Peacock)
(London Newsdesk 44 20 7542 7947)
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