Following the usual round of Pre-Budget Report rumours - including a story in this morning’s  ’The Independent’ that the launch of the National Pension Savings Scheme (also known as ‘Personal Accounts’) would be postponed for a further year - very little materialised from a financial planning perspective - which is probably welcome news.

A summary of the key points is provided below:

• Inheritance Tax threshold frozen at £325,000 (£650,000 per couple)
• Basic state pension to rise by 2.5% in 2010
• NI to increase by 0.5% for salaries of £20,000 or more from 2011
• Small companies’ 1% increase in Corporation Tax postponed
• Introduction of a 50% employer tax on bankers’ bonuses of £25,000 and above.

This final item caused the most hilarity at EBS - not because of any dislike of bankers - simply because I communicated this as a tax on ‘bakers bonuses’ - the jokes have been awful - from ‘making too much dough’ to ‘wanting to have their cake & eat it’. At least it’s reassuring to know that these things are read…

Posted in individuals |