Emergency Budget 2010Wednesday, June 23rd, 2010
The new Chancellor, George Osborne, presented his Emergency Budget on Tuesday, 22 June 2010. This review covers all of the proposals that are relevant to payroll, many of which will be enacted in the Finance (No. 2) Act 2010.
The new Budget proposals do not necessarily replace the changes announced in the previous government’s Budget in March 2010 and reference is made to those as appropriate. By way of clarification, the following provisions were enacted in the Finance Act 2010:
- the new 50% additional rate of tax, effective from 2010/11
- the bank payroll tax
- the high income excess relief charge on pension contributions where gross incomes exceed £130,000/£150,000 is defined, effective from 2011/12 (but see Pensions – annual allowance, below)
- the related changes to the special annual allowance in charge, effective from 2009/10
- provisions to strengthen the disclosure requirements for tax avoidance schemes, effective autumn 2010 (see also Disclosure of tax avoidance schemes – descriptions of Hallmarks, below)
- new definitions of CO2 emission levels for the car benefit charge, and the temporary removal of the charge for cars and vans with no CO2 emissions, various effective dates starting from 2010/11
- removal of the subsidised meal exemption when provided in conjunction with salary sacrifice and flexible benefits schemes, effective from 2011/12.