Chancellor of the Exchequer George Osborne said the following about his program: “pays for the past and plans for the future…”

The key news from yesterday’s Budget:  

Taxes:

- VAT rises to 20% from 17.5% from 4 January 2011

- Food, children’s clothing and other VAT-free items remain exempt from VAT for current Parliament

- Capital gains tax (CGT) for higher-rate taxpayers to 28% from midnight last night

- Capital gains tax to remain at 18% for basic-rate taxpayers

- CGT exempt amount remains at £10,100 this year

- Personal income tax allowance increased by £1,000 in April 2011 to £7,475

- Higher rate income tax rate remains frozen to 2013/14

- National Insurance threshold rises by £21 next year

 Sin taxes:

- No new increase on alcohol, tobacco or fuel

- Planned increase in cider duty to 10% above inflation scrapped from end of June

Business:

Mr Osborne announced the following measures which will affect companies:

-Corporation tax cut to 27% next year

-Corporation tax cut by 1% point a year for next three years to 24%

- Small companies tax rate cut to 20%

-10% CGT rate for entrepreneurs extended to first £5m of qualifying gains

Taxation of non-domiciled individuals:

The Chancellor has announced that the Government will review the taxation of non-domiciled individuals. This reiterates a statement made previously in the Coalition Agreement.

The Chancellor called the measures in this historic budget “unavoidable,” and announced a raft of changes to tax and spending.