June Budget in brief

1. The personal allowance for 2011/12 will increase by £1,000 to £7,475 for those aged under 65 and if you are a basic rate tax payer it will save you £200 per year.  Higher rate tax payers will not benefit from this announcement at all and their allowance will be adjusted accordingly.
   
   
2. For businesses, the Employer National Insurance threshold will rise by £21 per week above indexation from 6 April 2011.
   
   
3. Anyone setting up a new business outside London, the South-East and the Eastern region of England will noy pay Employer National Insurance from up to £5,000 for each of the first ten employees they recruit.  This measure is to start almost immediately.
   
   
4. Capital Gains arising between 6 April 2010 and 22 June 2010 will be taxed at the rate of 18%.  Gains after that time will be taxed at either 18% or 28% depending on whether or not the taxpayer falls into higher rate tax.
    
5. Small Companies will enjoy a Corporation Tax rate on their profits of 20% from 1 April 2011.
    
6. VAT will rise to 20% from 4 January 2011.