Quarterly News

Hung out to dry

A regular feature of early summer in Parliament would normally be the annual Finance Bill debates. However, summer 2010 is shaping up to be rather different. Instead, an early Finance Act 2010 received Royal Assent on 8 April (with no debate) before preparations for the General Election got underway. Whilst certain proposals contained in the 2009 Pre-Budget and 2010 Budget reports were included, others were not introduced. Rather, the 2010 Budget notes often stated the following 'the government intends to legislate this measure in a Finance Bill to be introduced as soon as possible in the next Parliament'.

The General Election outcome could be compared to a colourful mixed hanging basket as no one party obtained majority power. A second 2010 Budget is now expected following the resulting Conservative-Liberal Democrat coalition. This means that some of the earlier proposals of the previous government may wither as other tax proposals and policies are put on display. The precise nature and effective operational date of any new tax law remains 'hung' until that second Budget is not only presented but also proceeds through the parliamentary process to become a second Finance Act 2010.

We will keep you informed of developments as they unfold but please contact us if there are any issues you wish to discuss.

News Highlights

Plant capital allowances

Have you installed new 'plant' in a building used for the purposes of your trade recently? The read on.

Every pound counts

The AIA has now been increased from £50,000 to £100,000 in the Finance Act 2010.

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