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Personal tax changes

The Chancellor has not only brought forward proposals which were to take place in 2011, he has also made changes to his original announcements.

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Enhanced relief for trading losses

Under current rules businesses already have a number of mechanisms to relieve trading losses against other income including past trading profits.

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Capital allowances on plant and machinery

Additional capital allowances are to be available for expenditure incurred by a business in the 12 month period (starting 1 April 2009 for companies and 6 April 2009 for individuals and partnerships).

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Standard rate vat

The standard rate of VAT was reduced from 17.5% to 15% for the 13 month period 1 December 2008 to 31 December 2009. HMRC have confirmed that the standard rate of VAT will revert to 17.5% from 1 January 2010.

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Businesses given more time to pay business rates

Alistair Darling made a late change to the impact of business rate rises which were due to take effect in England from 1 April 2009.

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