TAX NEWS - 2010

Key points of British budget

Key points in the budget announced Tuesday by Treasury chief George Osborne:

- Government borrowing to decline from 10 percent of gross domestic product to about 1 percent in five years.

- Spending cut by 32 billion pounds ($39 billion) a year by 2014-15.

- Value-added tax on goods and services to rise from 17.5 percent to 20 percent on Jan. 4; food, children's clothing, books and newspapers remain exempt.

- Two-year freeze on public sector pay except for those earning 21,000 pounds a year or less.

- Corporation tax cut from 28 percent to 24 percent over four years.

- No income tax on those earning less than 7,475 pounds effective next year, an increase of 1,000 pounds; estimated to benefit 880,000 people.

- Capital gains tax to rise from 18 percent to 28 percent for high earners.

- A levy on balances of U.K. banks and foreign banks' U.K. operations, to raise 2 billion pounds a year. Details of who pays and who is exempt are not announced.