VAT

From January 4 2011, the main rate of VAT will rise from 17.5% to 20%. Current zero-rated items like children's clothes and magazines will remain exempt.

Income Tax

Personal income tax allowance to be increased by £1,000 in April to £7,475 - worth £170 a year to basic rate taxpayers.

Capital Gains Tax

Capital Gains Tax remains at 18% for low and middle-income savers, higher rate taxpayers will pay 28%. The change in rate applies from 23 June 2010.  

The annual exemption remains unchanged for 2010/11 at £10,100.

Capital allowances

The Annual Investment Allowance (AIA) will be reduced from £100,000 to £25,000 p.a. for expenditure incurred on or after 1 April 2012 for companies and 6 April 2012 for unincorporated businesses.  Transitional rules will be introduced.  

Writing down allowances will be reduced to 18% for plant and machinery main rate pool expenditure and 8% for the special rate pool and also take effect from 2012.

Landline Tax

A "landline tax" to fund the rollout of fast broadband will be scrapped - instead the government will support private investment, partly funded by the digital switchover under-spend within the TV license fee.

Cigarettes, Alcohol and Fuel

No change this time round. Labour's plan to increase the duty on cider by 10% above inflation will be scrapped from July.

Benefits

Child benefit will be frozen for the next three years.

Tax credits will be reduced for families earning over £40,000 next year.

Low income families will get more Child Tax Credit - the amount per child will rise by £150 above the rate of inflation next year.

New maximum limit of £400 a week will be applied to Housing Benefit, to save £1.8bn a year by the end of the Parliament.

Health in pregnancy grant to be abolished from April 2011, the Sure Start maternity grant will be restricted to the first child.

Lone parents will be expected to look for work when their youngest child goes to school.

Pensions

The basic state pension will be linked to earnings from April 2011, with the pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater.

The government will accelerate the increase in state pension age to 66.

National Insurance

From April 2011, the threshold at which employers start to pay National Insurance will rise by £21 per week, above indexation.

Corporation Tax

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

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