Income Tax

VAT to Return to 17.5%, Not Any Higher – Promises Chancellor

The news that the rate of VAT would return to 17.5% in January, and not any higher, brought a sigh of relief to retailers. The development has been confirmed by Chancellor Darling, who clearly explained that he had no plans for any further increase.

The tax was reversed from 17.5% to 15% last December as one year measure in emergency to encourage consumer spending in order to save the banking system from collapsing. Last year's reduction cost was some 11 billion pounds, the Chancellor said.

Pre-Budget Report Might Feature Windfall Tax

Various newspapers across the country are now speculating that the upcoming pre-budget report will detail the windfall tax, which is one of Chancellor Alistair Darling's many proposed ways to raise more cash via Britain's wealthiest people.

The tax is being cheered by many taxpayers who are furious at bonus payments that have been made to top management of many influential firms, particularly banks, which have reportedly gone beyond 6 Billion Pounds for the current year.