Budget Summary 2011 Introduction Income Tax Tax Credits and Benefits National Insurance Employees Savings and Investment Capital Gains Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Stamp Duty Land Tax Other Measures Income Tax Rates and Allowances National Insurance Contributions

Value Added Tax Registration thresholds The registration threshold for VAT rises from £70,000 to £73,000 on 1 April 2011. The deregistration threshold rises from £68,000 to £71,000 on the same date. Self-assessment returns for businesses can use "three-line accounts" if they are below the registration threshold. Rates and scope The standard rate of VAT will remain unchanged at 20%, and there are no changes to the list of taxable, exempt and zero-rated supplies. The values to be used by a business which supplies road fuel for private use change for return periods starting on or after 1 May 2011. Although the scale rates are based on CO2 emissions, they are not based on a percentage calculation as the income tax benefit charges are: it is necessary to look up the exact figure in a table which is available on the HMRC website. Low value consignment relief Imports from outside the EU which arrive by post are free of VAT (as well as customs duty) if they cost less than £18. This is exploited by businesses which supply a range of goods (e.g. DVDs, CDs) by post from the Channel Islands and other places. It is proposed to lower the limit to £15 with effect from 1 November 2011. The government will discuss possible ways of tightening the rules with the European Commission, and may lower the limit further if a way cannot be found to close what is clearly regarded as an unacceptable loophole.