VAT - Budget rise in sales tax was 'unavoidable' says Chancellor

We all pay it and we’ll all feel it. The increase in the rate of VAT to 20% from 4th January next year will bring in £13 billion of extra revenue over the lifetime of the current parliament.

Table of contents

VAT - Budget rise in sales tax was 'unavoidable' says Chancellor

Budget rise in sales tax was 'unavoidable according to chancellor

We all pay it and we’ll all feel it.  The increase in the rate of VAT to 20% from 4th January next year will bring in £13 billion of extra revenue over the lifetime of the current parliament.In his first Budget as Chancellor, George Osborne said that the rise in VAT from its current rate of 17.5% was necessary.  ‘The years of debt and spending make this unavoidable,’ he continued. ‘That is £13 billion we don’t have to find from extra spending cuts or income tax rises.’VAT exemptions for food, children’s clothing, books and newspaper will be preserved for the course of this parliament.The Chancellor has also increased VAT on general insurance premiums to 20% from 17.5% for the higher rate, which will mean more on travel insurance and product warranties for consumers.  The standard rate of insurance premium tax will also increase to 6% from 5% which will impact on the price of car and home insurance.Retailers may benefit from this impending rise come Christmas as shoppers may not put off purchases until the January sales.  Others are sure to ‘cash in’ now too.  Have a quote now for new windows – as long as the price is held for 12 months.  You could benefit even if you don’t want to make the purchase in 2010.

Join our Newsletter

Subscribe and get the latest updates about inheritance tax and Estate Planning into your mailbox.

Our specialist inheritance tax service is easier, simpler and more cost effective than instructing a Lawyer, Accountant or Financial Adviser.

Contact Us

Bluebond Tax Planning
5 PalmerstonDrive,
Wheathampstead,
Herts,
AL4 8FE

Tel: 020 8895 6157 (clients only)
Tel: 01582 832253 (suppliers only)

Email:

enquiry@bluebond.co.uk

Watch how we solved our client Frank's inheritance tax problem and saved him both time and money.

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

Copyright © 2021 Bluebond.co.uk
-
Copyright Notice
-
Legal Disclaimer
-
Terms & Conditions
-
Privacy Policy