At 12.30pm on Tuesday 22nd June, 2010 Chancellor George Osborne officially announced the coalition’s Emergency Budget. We summarise the changes that will have the biggest impact on most of our finances.

At 12.30pm today, Tuesday 22nd June 2010, Chancellor George Osborne announced details of the coalition government’s first budget designed to tackle the UK’s deficit.

Here are some of the key points that will affect your finances:
Tax Income Tax

• The personal allowance threshold will increase by £1,000 to £7,475 in April 2011.
• Higher rate tax payers will not benefit from this increase.
• The higher rate income tax threshold will remain frozen until 2013-2014.

VAT

• The standard rate of VAT will rise by 2.5% to 20% from 4th January, 2011.
• The VAT exemption on zero rated items – such as children’s clothing and certain foods – will be upheld throughout this parliament.

Council Tax

• Council tax will be frozen for 1 year from April 2011.

Capital Gains Tax

• CGT will remain at 18% for those on low and middle incomes.
• Higher rate tax payers will see the rate at which they pay CGT rise to 28% from midnight tonight.
• The annual CGT exemption threshold will remain at £10,100.

Fuel duty

• There will be no increase in fuel duty.

Alcohol & tobacco duty

• There will be no increase in duty on alcohol and tobacco.
• The recent increase in duty on cider will be reversed.