Summer Budget 2010 Introduction Income Tax Tax Credits and Benefits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Insurance Premium Tax Other Measures Tax Tables National Insurance

Business Tax Capital allowances The rates of writing down allowances (WDA) will be reduced for chargeable periods ending on or after 1 April 2012 (companies) or 6 April 2012 (unincorporated trades). The "general pool" will be written down at 18% rather than 20%, and the "special rate pool" (typically longer-life assets and cars with carbon dioxide emissions rating above 160g/km) at 8% rather than 10%. At the same time, the Annual Investment Allowance (AIA) – the amount of expenditure on plant and machinery that qualifies for a 100% immediate deduction – will be reduced from £100,000 to £25,000. It rose from £50,000 to £100,000 in April 2010. There are complex rules for computing both the WDA and the AIA for chargeable periods which straddle a change in rate, and these will need to be consulted in 2012 for traders whose year ends do not match the tax year. Tax Tip Be aware of the tax effect of plant purchases – maybe advance them. Zero-emission goods vehicles The last Labour Budget introduced nil taxable benefits for company cars which do not emit carbon dioxide, for five years starting in 2010/11. The new Budget brings in 100% first year allowances for the purchase of goods vehicles with zero emissions. It applies for purchases for five years from 1 April 2010 (companies) or 6 April 2010 (unincorporated). The vehicle must be new and unused, not second-hand.