George Osborne’s first Budget as UK Chancellor of the Exchequer held few real surprises but relief was felt all round that Child Tax Credits were being retained and, in fact, slightly improved.

The Budget headlines are as follows:

1. Child benefit will be frozen for 3 years – currently £20.30 for first child and £13.40 for each subsequent child
2. The child element of child tax credit will rise by £150 from April 2011
3. Tax credits will be cut for people earning over £40,000 pa and from next year tax credits will rise by reference to the Consumer Prices Index rather than the higher Retail Prices index
4. VAT to rise from 17.5% to 20% from 4^th January 2011
5. Income tax – personal allowance will increase from April 2011 to £7,475 per annum
6. Higher rate tax threshold will remain frozen until April 2014
7. Basic state pension will be re-linked to earnings from April 2011
8. Capital Gains Tax (CGT) will remain at 18% for most individuals
9. From midnight tonight CGT will rise to 28% for higher rate income tax payers
10. State Pension age will increase to 66 by 2016.

For how this might affect you if your family is splitting up please contact info@flip.co.uk

Tags: budget, divorce, families, separation

This entry was posted on Tuesday, June 22nd, 2010 at 1:45 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.