This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
 

UK Budget Date Announced

Thursday, March 11, 2010

Chancellor of the Exchequer Alistair Darling confirmed in a Written Ministerial Statement on March 10 that the 2010 government budget will take place on Wednesday March 24.

With a general election approaching, and uncertain in the international markets as to whether the UK can meet its objectives on the public finances, this will be one of the most keenly-watched budget statements in recent years. The government has committed itself to halving the GBP180bn budget deficit over four years, but Darling finds himself in the unenviable position of treading an unsteady tightrope; drastic cuts in public spending are needed, while more increases in taxation seem inevitable, and the Chancellor must be careful not to choke off an economic recovery, whilst signaling to the financial markets that the government has a credible plan to cut both deficit and debt. Also, he must avoid alienating both Labour's core support and the much coveted middle class vote if the government stands a chance of being re-elected.

With increases in income tax for top earners and a National Insurance hike already in the pipeline, observers expect that the Chancellor will turn his attention to other taxes in the budget in order to raise more revenue. Capital gains tax, which at 18%, is much lower than both the top rate of income tax and the corporate tax rate, seems a likely candidate for a rate increase. A rise in the value-added tax rate, currently 17.5%, could also be on the cards, possibly by as much as 2.5% to align the UK with the European Union average.

In a speech on the morning of March 10, Prime Minister Gordon Brown foreshadowed some of the measures the government would use to reduce the deficit. One of them is a pay freeze for senior staff in the civil service, senior staff in the military, the judiciary, senior managers in the health service and the pay of consultants, doctors and dentists in a bid to shave GBP3bn from the budget by 2013-14 when combined with pay controls announced in December.

However, he also expressed his determination to protect essential front line services and leave the health and eduction budgets intact. He also hinted that there may be more pain for people on high incomes in the forthcoming budget, with those on annual pay of GBP150,000 or more facing a 50% top rate of tax from April.

"Fairness will be at the heart of the measures we take to reduce the deficit," he said. "Unlike the policies of the 1980s and 1990s - where taxes for the wealthiest people in society came down, as the burden on people on middle and modest incomes went up - we will not make those on modest and middle incomes take the greatest strain," Brown added, in a swipe at the policies of the previous Conservative administration.

He also took the opportunity to rubbish the Conservative opposition's proposals to means test tax credits and cut inheritance tax.

"It simply does not make any sense to me to cut tax credits for one million and a half middle class families on modest incomes - while at the same time proposing massive inheritance tax cuts worth GBP200,000 to a handful of estates," he argued.

"We will set out in more detail in the Budget in two weeks’ time how we deliver on our commitment to restore the public finances while protecting the fundamental public services that we all depend on," Brown said.

Mailing List

Click here to manage your mailing list preferences, or view our privacy statement.


The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




Latest News

Jersey Regulator Issues AML/CTF Funds Guidance
16/3/2017
Jersey's financial services regulator, the Jersey Financial Services Commission, has issued new anti-money laundering and countering the financing of terrorism guidance for Funds and Fund Operators.

More Tax Hikes For UK Taxpayers In 2017 Budget
9/3/2017
The UK Budget, released on March 9, 2017, featured tax measures to, among other things, hike taxes on self-employed workers, further close avenues for legal avoidance, and defer mandatory digital tax reporting until April 2019.

ACOSS Submits Recommendations For Australian Budget
2/3/2017
The Australian Council of Social Services has urged that the Government abolish ineffective tax concessions, introduce a sugary drinks tax, and scrap its company tax proposals.

MEPs Call For Wider Access To Beneficial Ownership Data
1/3/2017
EU citizens would be able to view information in registers of beneficial ownership without having to demonstrate a "legitimate interest," under proposed amendments the Anti-Money Laundering Directive.

New Zealand Tax Changes Enter Into Force
28/2/2017
A Bill including provisions to simplify New Zealand's tax processes, reduce compliance costs for smaller businesses, and tighten foreign trust disclosure rules received Royal Assent on February 21.

Guernsey Introduces Client Asset Handling Rules
22/2/2017
Guernsey's financial services regulator, the Guernsey Financial Services Commission, said it intends to introduce rules governing the holding and administration of client assets in 2017.

Australian Accountants Urge Tax Burden Shift
14/2/2017
Australia desperately needs large scale tax reform and should aim to rebalance its tax mix, the Institute of Public Accountants has argued.

IRS Issues Final Regulations On REIT Spin-Offs
24/1/2017
On January 18, the US Internal Revenue Service issued its final regulations regarding the measures included in the Protecting Americans from Tax Hikes Act to restrict the tax-free spin-offs involving publicly traded real estate investment trusts (REITs).

Bermuda, EU To Collaborate On Insurance, Pensions Oversight
17/1/2017
The European Insurance and Occupational Pensions Authority and the Bermuda Monetary Authority have newly signed a memorandum of understanding.

Hong Kong Consults On Beneficial Ownership Plans
13/1/2017
Hong Kong's Financial Services and the Treasury Bureau has launched public consultations on legislative proposals to increase the transparency of corporate beneficial ownership in the city, and to enhance its regulatory regime for combating money laundering and terrorist financing.

Hong Kong Reports On Incorporations In 2016
12/1/2017
There was an increase in local company incorporations in Hong Kong in 2016, although incorporations by foreign companies experienced a dip, according to the territory's Companies Registry.

Guernsey Regulator Outlines 2017 Funds Strategy
2/1/2017
Guernsey's financial services regulator, the Guernsey Financial Services Commission, has outlined its funds sector strategy for 2017.

Canada Waives Income, Activities Reporting For Labor Org's
21/12/2016
Canada's Revenue Minister has announced that certain reporting requirements on labor organizations and labor trusts will be waived.

South African Tax Bills Approved By Parliament
19/12/2016
South Africa's Ministry of Finance has published the 2016 Taxation Laws Amendment Bill, which has received parliamentary approval and gives effect to the tax changes announced in the Budget in February this year, together with legislation confirming the final details of. the Special Voluntary Disclosure Program.

Switzerland Praised For Combatting Financial Crime
12/12/2016
The Swiss Federal Council has hailed the publication of the Financial Action Task Force's fourth mutual evaluation report on action taken to combat money laundering and terrorist financing, stating that "overall Switzerland's results can be considered to be good."