VAT raised to 20% from next January

VAT raised to 20% from next January


VAT will rise from 17.5% to 20% from 4 January 2011.

'The years of debt and spending made this unavoidable,' chanceller George Osborne said.

The VAT rise will give the Treasury £13 billion a year in extra revenues, he added.

Mark Deans, Moneycorp Dealing Manager, noted the pound had not immediately reacted to the VAT hike.

Meanwhile Osborne announced that Corporation Tax would be cut next year to 27%, and by 1% annually for the next three years, taking it to 24%.

source: citywire.co.uk