Personal tax

Rules that allow owners who rent out holiday homes to set trading losses against their tax bills are to be dropped from April 2010.

Future tax rises were always likely to be on the agenda as the Chancellor seeks to reassure the international money markets that he has plans laid to reduce the UK’s huge borrowing deficit.

The Chancellor has delivered one of the most important Budgets in years against a backdrop of rising unemployment, soaring government borrowing and quite possibly the hardest hitting recession since the Second World War.

The government could fail to raise the amounts of money it anticipates following the Chancellor’s decision to introduce a new 45 per cent top income tax band, it has been claimed.

It is thought that the Chancellor may use the Budget to announce that last year’s temporary cut in stamp duty will be extended for a further three months.

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