Pre-Budget Report 2009 Introduction Personal tax Tax rates and allowances Furnished holiday lettings Pensions and Credits State Pension Rates of tax credit National Insurance Contributions Rates and limits: 2010/11 Rates and limits: 2011/12 Employees Bankers' bonuses Electric cars and vans Cars up to 2012 Car fuel Works canteen Savings Pension contributions Capital Gains Tax Annual exemption and rate Inheritance Tax Rates and threshold Stamp Duty/Stamp Duty Land Tax Extended holiday ends Corporation Tax Rate of tax Business Tax Bank payroll tax Capital allowances Research and development Time to pay Empty property rates relief Value Added Tax Standard rate Flat rate Other Measures Equitable liability Offshore disclosure opportunity Public sector pay and pensions Tax avoidance

Bank payroll tax As widely predicted, the Chancellor announced a special charge on bankers' bonuses. It appears likely to be a very complicated rule that will be hard to apply in practice, and perhaps the clearest thing about it is that it is charged on the employing bank or building society rather than on the individual employee. It is supposed to be levied at 50% on a bonus awarded from the moment the announcement was made on 9 December 2009 up to 5 April 2010, to the extent that the bonus exceeds £25,000. Unlike employer's NIC, the "bank payroll tax" will not be an allowable expense for the company's corporation tax. The extra charge does not apply to basic salary or to bonuses which were a contractual entitlement before the announcement was made. At first sight, it would seem relatively easy for the bank to avoid the charge by delaying awarding the bonus until after 5 April, or by consolidating it with salary. It remains to be seen how effectively HMRC can police this headline-grabbing but controversial measure.