Budget 2012

Main Budget proposals

• A further increase in the personal allowance but with a reduction in the basic rate band from April 2013.
• An additional 1% cut in the main rate of corporation tax to 24% from April 2012 but no reduction in Small Companies Rate (20%) going forward.
• A reduction in the additional rate of income tax from 50% to 45% from April 2013.
• Details of how Child Benefit will be taxed on those with income in excess of £50,000.
• Proposals for tax simplification for smaller businesses(hopefully the final abolition of IR35!!).
• Consultation on the introduction of a general anti-abuse rule.
• Increased Stamp Duty Land Tax on high value residential properties.

Previous announcements

Some of the changes have been the subject of earlier announcements. Here is a reminder of some of the more important ones:

• The introduction of a Statutory Residence Test
• Changes for non-domiciled individuals
• Reduced rates of inheritance tax for charitable individuals
• Introduction of the Seed Enterprise Investment Scheme
• Reduction of the Annual Investment Allowance from April 2012
• Changes to the relief available for Research and Development expenditure.