Here are the key points announced in this year’s Budget…
- 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.
- 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.
- To be reduced by 1% for every £100 earned by a parent over £50,000 and scrapped altogether at £60,000.
- 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.
- 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.
- Sunday trading laws relaxed for eight Sundays during Olympics and Paralympics, starting July 22.
- 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.