Darling scraps corporation tax hike in PBR

Date: 9th December 2009

A range of tax measures have been announced by chancellor of the exchequer Alistair Darling as part of today's Pre-Budget Report.

Banks are to pay a one-off tax of 50 per cent on employee bonuses exceeding £25,000 under the plans.

The VAT reversion from 15 per cent to 17.5 per cent was also confirmed to take place on New Year's Day.

Other reforms could potentially help out small businesses in the UK.

The planned 1p increase to corporation tax will now not take place, according to the Pre-Budget Report.

This means that smaller companies will continue paying the same corporation tax rate in 2010.

Mr Darling has also revised the official economic and debt forecasts.

GDP is now expected to shrink by 4.75 per cent this year, down from the initial estimate of 3.5 per cent.

The increase in public deficits - which gives impetus to future tax rises - is likely to be £178 billion, revised from £175 billion.

Posted by Anthony Burns