Budget Highlights 2012

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WEDNESDAY, 21 MARCH 2012

Here are the key points announced in this year’s Budget…

Income Tax

  • 50p top rate of tax cut to 45p from April 2013;
  • Personal income tax allowance increases to £9205 from April 2013;
  • Anti-tax avoidance rule introduced.

Pensions

  • Age-related allowances for pensioners simplified from April 2013 with single personal allowance that ensures no pensioner loses;
  • Automatic review of state pension age to ensure it keeps pace with increasing lifespans;
  • New single-tier state pension for future pensioners to be set at about £140 and based on contributions.

Child Benefit

  • To be reduced by 1% for every £100 earned by a parent over £50,000 and scrapped altogether at £60,000.

Property

  • 7% stamp duty level introduced on purchase of homes worth more than £2million. Homes in this price bracket upwards bought through companies will pay 15% stamp duty;
  • More financial help for building firms.

Fuel, alcohol and cigarettes

  • Tobacco duty to rise by 5% above inflation from 6pm – adding 37p to pack of cigarettes;
  • No change on alcohol duty;
  • No change to fuel duty plans.

Business

  • Corporation tax reduced to 24% from April and down to 22% by 2014;
  • More straightforward tax system for small firms turning over up to £77,000;
  • Possible enterprise loans for young people to start business.

Commerce

  • Sunday trading laws relaxed for eight Sundays during Olympics and Paralympics, starting July 22.

Economy

  • Office for Budget Responsibility revises 2012 UK growth forecast up from 0.7% to 0.8%. 2013 2%, 2014 is 2.7%;
  • UK inflation forecast to fall from 2.8% this year to 1.9% in 2013;
  • Borrowing this year to be £126billion;
  • Unemployment to hit 8.7% later this year before falling to 6.3% by 2016-17.

WRITTEN BY JOHN ANGELETTA of BMV Investment Deals.

John’s site provides BMV Deals around the UK and abroad

 

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