UK Budget 2009

The budget

Personal taxation
The following changes have been announced which will come into effect from April 2010:

an additional Income Tax rate of 50 per cent will apply to people earning over £150,000
the personal allowance will be restricted to those earning over £100,000
Income Tax and National Insurance rates for 2009-10 Types of tax (momey, tax and benefits section) Pensions and savings
The Budget announced the following changes to pensions:

an increase of £100 to over-80s households and £50 to over-60s households in 2009/10, via their Winter Fuel Payment
tax relief on pensions contributions will be restricted to those earning £150,000 and over
The overall annual investment limit for ISAs rises to £10,200 of which £5,100 can be saved in cash. These higher limits will be available to over-50s from 6 October 2009 and to everyone from 6 April 2010.

Saving and investing with ISAs (money, tax and benefits section) Housing and homeowners
The stamp duty land tax threshold on residential properties costing £175,000 or less will be extended until 31 December 2009.

Stamp Duty (money, tax and benefits section) Motoring and transport
The government has announced a temporary vehicle scrappage scheme - it offers consumers £2,000 off the cost of a new vehicle to replace a vehicle more than 10 years old.

Budget 2009 confirmed the fuel duty increase announced in the 2008 Pre-Budget report.
Alcohol and tobacco
Alcohol duty rates increase from 23 April 2009. The duty will increase by 2 per cent, adding one penny to the price of a pint of beer, 13 pence to the price of a bottle of spirits and four pence to the price of a bottle of wine.

Duty on tobacco will increase by 2 per cent from 22 April 2009.

Employment and training
The Budget announced that 18-24 year olds who have been unemployed for 12 months will be guaranteed a job, training or a work placement.

An extra 54,500 places will be created in the next academic year for 16 and 17 year olds who wish to take them up.
The UK economy
Budget 2009 sets out the Government’s long-term economic goals, including its growth, inflation, borrowing and public spending plans and forecasts.
The environment
Budget 2009 provides over £1.4 billion of extra targeted support in the low-carbon sector.

Measures include extra money to support businesses, public buildings and households to be more energy efficient. Measures such as these aim to save around £60 million in energy bills each year.