June Budget

In his emergency Budget today, Chancellor George Osborne has announced that VAT will be increased to 20%.

On 4 January 2011, the main rate of VAT will rise from 17.5% to 20%.

In addition to the VAT increase, which Mr Osborne said would raise £13bn a year, capital gains tax will be increased to 28% for top rate taxpayers.
Banks and building societies will have to pay a new £2bn levy from January next year.

From April next year, the threshold at which employers start to pay National Insurance will rise by £21 per week, above indexation.

Next year will see Corporation Tax cut to 27%, and by 1% annually for the next three years, until it reaches 24%.

The small companies' tax rate will also be cut to 20%.