Government Tax U-Turn

The following controversial proposals announced in the last Budget have been dropped at the Conservatives’ insistence by in order to pass the Finance Bill before dissolution of the current Parliament:

• Proposal to remove the trading status from furnished holiday lettings, which was announced in the last Budget to come into force from 6 April 2010.
• The proposal in Budget 2010 to obtain a security for PAYE.
• Cider duty increase by 10% reverse – cider duty to be same as for beers and spirits (2%)
• 50p landline duty on telephone landline bills to fund next generation broadband development.