For anyone who has managed
to avoid all the coverage, George Osborne presented his budget
earlier today and the main tax measures within it were as
Personal tax allowance increased to
£9,205 from April 2013.
Higher rate of tax reduced from 50%
to 45% from April 2013.
Main rate of corporation tax
reduced to 24% from April 2012 and to 22% by 2014.
New cap on tax reliefs set at 25%
of total income for anyone claiming more than £50,000 in a year,
but no significant change to pensions relief.
New stamp duty level of 7% for
homes worth more than £2m. Any such homes bought through companies
will pay 15%.
Age-related allowances for
pensioners to be phased out.
No reversal of the cut to capital
allowance Annual Investment Allowance which falls from £100,000 to
£25,000 from April 2012.
Company car tax rates 2014-16 - The
appropriate percentage of list price subject to tax will increase
by one percentage point 2014-15, and by two percentage points, to a
maximum of 37 per cent in both 2015-16 and 2016-17.
From 1 April 2012 the VAT
registration threshold will be increased from £73,000 to £77,000
and the deregistration threshold from £71,000 to £75,000.
Child Benefit will be withdrawn
through an income tax charge, and that the charge will only apply
to households where someone has an income over £50,000 a year. For
households where someone has an income between £50,000 and £60,000
the charge will apply gradually.
Our full budget summary will be
available on our website tomorrow, if you have any queries on the
contact me or make a comment below.
Paul Carson is the tax partner at Simpson Wood, a progressive and
proactive firm of Chartered Accountants in Huddersfield, dealing
with all aspects of tax but specialising in corporate tax and
remuneration planning. Follow Paul on Twitter,
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