July 2010

Anyone keeping an ear to the News either via Television or the Papers will be aware that the new Coalition Government is intent on making its' mark. We have seen changes in Taxation with an increase in Income Tax Personal Allowances, an increase in Capital Gains Tax (CGT), when gains & income combined exceed the Basic Rate Band, and from next January, an increase in VAT to 20%. 

The increase in Personal Allowances is clearly welcome news to most taxpayers, as they are simply allowed to keep more of their income before taxation is applied. The Coalition clearly see this as a more effective and simple method of helping the lower paid than the complex system of Tax Credits which appears to be becoming a less important part of the tax regime. The increase in the rate of CGT will actually not raise a large amount of revenue, but does bring capital gains more in line with income tax rates. VAT is likely to raise substantial revenue, and is easy to collect due to most businesses having to complete VAT returns after collecting the tax for the Revenue. It will be interesting to see whether this rise has the much negative effect considering that last year's temporary fall to 15%  seemed to have little positive effect. Mt guess is that most companies in the consumer facing sectors, that is retail, will attempt to absorb the rise and try to negotiate better prices from suppliers.

We at Atlantic Coast are delighted to welcome back Maria after her few months Maternity Leave. She is here in Perranporth on Mondays, Tuesdays, & Thursdays and ready to take on your business. Additionally, we are also very pleased to welcome on board Ashley Miller. Ashley is a fully qualified Mortgage Adviser and has extensive experience gained in a Corporate Environment. Ashley has offices above LEWIS HAUGHTON WILLS, The Bay Estate Agents, in Church Street, Falmouth and can be contacted on 01326 211511 or 07976926199.