Most people will now have heard the relevant bits of the budget given in Parliament today by the Chancellor, and lots of labour reaction to it. On balance I feel it was a very good budget given the circumstances. The rise in VAT will be unpopular but at least this brings us more into line with the rest of Europe. It has been 19.6% in France for some years and they are coping with it – so will we.
I have had several clients ring me in a panic this week about capital gains tax (CGT) and the “changes” they have read about in the newspapers.
They have heard the annual CGT allowance is being slashed from £10,100 to £2,500. They have heard the rate of CGT will rise from 18% to 50%, and they have heard all this will be backdated to the 6th April 2010, messing up deals that have already been done.
The simple fact is…