| NEW DELHI, MAY 26, 2010: BRITISHERS have always been fond of
Indian curry that now seems to have spilled on to their political
fabric.
For
the first time in about half a century, Britain has a curried leadership
comprising a new Conservative Prime Minister, David Cameron and a new Liberal
Democrat Deputy Prime Minister, Nick Clegg.
The
new Government faces a huge budgetary deficit, estimated around GBP 165 billion.
According to Taxand, a UK-based network of leading independent tax firms and
advisors, taxation will be a crucial tool to ease the deficit, and a key area of
debate between the two parties.
Some
of the proposals expected in the emergency budget, to be presented to parliament
by George Osborne, on June 22, 2010, as predicted by Taxand are as
follows:
++
Introduction of a new bank levy that could be about 10 per cent of banking
profits.
++ An
increase in value added tax (VAT) from the current 17.5 per cent. A 2.5 per cent
increase in VAT to 20 per cent can increase revenues by GBP £12 billion
annually.
++ An
increase in the rate of capital gains tax, currently chargeable at a flat rate
of 18 per cent.
++ A
reduction or an elimination of the tax free capital gains personal allowance
currently at GBP 10,100.
++
The cancelling of the 1% increase in employer National Insurance contributions
scheduled to take place next year
++
Removal of a higher rate tax relief for charitable contributions.
++
Introduction of a new airline tax on a per plane basis based on carbon emissions
rather than the current passenger duty.
++
Simplification and reduction in the structure and rate of corporation tax so
that it becomes the lowest rate among the G20 nations.
++
Reform of the controlled foreign companies rules,
++ An
increase in the income tax allowance to GBP 10,000.
|
