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
follows:
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Child Benefit will be withdrawn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
changes please
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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