No Income tax changes this year.

 
The income tax personal allowance will gradually be restricted for those with incomes over £100,000. The personal allowance will be reduced at a rate of £1 for every £2 over £100,000 until completely withdrawn from April 2010.

Loss-making companies will be able to reclaim more taxes on profits made in the last three years.

Fuel duty increased by 2 pence per litre on 1 September 2009

An increase in capital allowances for new investment to 40% for one year, With effect from April 2009, to allow a higher proportion of private investment to be offset in that year against taxable profits.

The 2008 Pre-Budget Report announced a temporary, one-year extension of trading loss carry-back for businesses from one to three years, for losses up to £50,000. To support more businesses through the downturn, this temporary extension will now apply for two years from 24 November 2008 for companies, and for the 2008-09 and 2009-10 tax years for unincorporated businesses.

Alcohol duties will go up by 2% from 23 April 2009. There will be an increase in tobacco duty of 2% from 22 April 2009.

From 1 May 2009 the VAT registration threshold will increase in line with inflation from £67,000 to £68,000

A first-year capital allowance of 40% for one year with effect from April 2009. Firms investing over £50,000 in qualifying plant and machinery in 2009-10 will benefit from a higher rate of tax relief on investment.

HM Revenue and Customs will legislate for the publication by HMRC of the names of both corporate and individual taxpayers who incur a penalty because they have deliberately understated more than £25,000 of tax.

It will establish a statutory requirement for senior accounting officers of major corporates to certify personally that adequate controls to prepare accurate tax computations are in place.

HMRC will require those who have incurred a penalty for deliberate understatement of over £5,000 of tax to provide more information about their tax affairs for up to five years to ensure they have proper systems to be able to make a correct tax return.


ECONOMY

Economy forecast to shrink 3.5% in 2009
Growth expected to pick up in 2010, expanding by 1.25%.
Economy to grow by 3.5% annually from 2011
Consumer price inflation to fall to 1% by end of year.


HOUSING

Stamp duty holiday for homes over £175,000 to be extended until end of the year.


CAR SCRAPPAGE SCHEME

From May motorists to get £2,000 discount on new cars if they trade in cars older than 10 years - this will remain in place until March 2010.

BENEFITS

From April next year the child element of the child tax credit will increase by £20.

Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children.

SAVINGS

The total annual limit for ISAs will increase to £10,200 for those over 50 with immediate effect, rolled out to all from next April. Cash ISAs will be increased to £5,100 from next April.


PENSIONERS

Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year.

The basic state pension will be increased by at least 2.5%, regardless of inflation.