George Osborne presented his third Budget on Wednesday 21st March 2012. The Chancellor started by reaffirming the need for stability in the UK economy and finished in Churchillian style.
Towards the end of last year the Government issued the majority of the clauses, in draft, of Finance Bill 2012 together with updates on consultations. The publication of the draft Finance Bill clauses is part of the Government's improvements in the way tax policy is developed, communicated and legislated. The Budget updates some of these previous announcements and also proposes further measures. Some of these changes apply from April 2012 and some take effect at a later date, so the timing needs to be carefully considered.
Our summary, attached at the foot of the page, focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments.
Some of the main proposals put forward in this Budget include:
- 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.
- 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.
- Consultation on the introduction of a general anti-abuse rule.
- Increased Stamp Duty Land Tax on high value residential properties.
For more in depth analysis of the issues stemming from the Budget, please click on the links below. Alternatively, get in touch with your usual Turcan Connell contact or call 0131 228 8111.
- Income Tax
- Tax Avoidance
- Business Tax
- Charity Donations