Budget 2009 - initial reaction
"Tax rises are to hit earlier, harder and wider than expected. Moreover, increases in alcohol, tobacco and fuel duties ensure that it is not simply high earners who will suffer the pain.
On the plus side, increased capital allowances and enhanced opportunities to benefit from carry-back relief on losses suggest that the Chancellor is trying to kick-start the business economy on the basis that the sooner we get through the recession the sooner tax revenues will start to increase.
High earners are clearly going to be feeling under the cosh. There will be the loss of personal allowances from next year for those earning over £100,000 pa and a new higher rate of 50% for those earning over £150,000, followed by a reduction in pension relief for those earning over £150,000 in 2011,"
said Richard Mannion, national tax director at Smith & Williamson, the accountancy and financial services group.
NB These comments are prepared before the full HMRC press releases become available. We will be providing further comment as the press releases are released.
Smith & Williamson's Budget booklet can be downloaded free of charge from http://www.smith.williamson.co.uk/budget from the afternoon of Thursday 23 April or click here to email your request and include the address to which you would like the brochure sent.
For further information:
Richard Mannion - National Tax Director - 020 7131 4252 / mob 07799 761326
Tim Lyford - Head of Corporate Tax - 020 7131 4213
Inez Anderson - Employment Tax and Incentives Director - 020 7131 4919
For a more detailed list of contacts - please visit the Budget section of our website.
PR queries:
Kate Harrison 020 7131 4228
Matt Rowe 020 7131 4550
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Note to editors
Smith & Williamson is an independent professional and financial services group employing 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Birmingham, Bristol, Glasgow, Guildford, Maidstone, North London, Salisbury, Southampton, and Worcester.
Smith & Williamson Limited
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International, a worldwide network of independent accounting firms.
