The Emergency Budget's Main Bulletins - What Will Effect You
'I will not hide hard choices from British people' - George Osbourne
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On the 4th January 2011, VAT will rise to 20%. This will earn £13bn a year by the end of parliament.
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The higher rate of Capital Gains Tax will be increased to 28% from Midnight tonight. The lower rate will remain the same, as will the Capital Gains Tax allowance (£10,100)
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Instead of £2m of lifetime gains, the first £5m of lifetime gains will qualify for Entrepreneurial relief.
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There is no increase in the rate in which Income is going to be taxed; but the personal allowance will raise to £7,475 a year from April 2011. This is one step towards gradually increasing the allowance to £10,000.
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There will be a 2 year pay freeze for Public Sector employees
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Tax credits for families earning over £40k a year will be reduced.
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Child benefit will be frozen for 3 years.
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Maximum limits on housing benefits will be introduced.
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The plans to raise the State Pension age to 66 will be accelerated.
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Corporation Tax will be reduced by 1% each year for the next four years, bringing it down to 24% by the end of parliament.
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Starting in January 2011, there will be a bank tax. This tax, by the end of parliament, is expected to raise £2bn a year.
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