The information contained within the following news articles have been pre published. The articles were published on the dates indicated and the information contained within these issues include references to taxation, legislation, regulation and other issues or concerns that may no longer apply
Key budget changes in less than 2 minutes.
The under 65’s personal allowance will increase by £1,000, from £6,475 to £7,475 for 2011/12. From April 2012 this will increase again by £630 to £8,105, however, there will be an equivalent £630 reduction of the basic-rate tax band resulting in a threshold at which individuals start paying 40 per cent at £42,475.
First time buyers
First-time buyers will benefit from the launch of a new shared equity scheme called ‘First Buy Direct’.
Maximum pension contributions will reduce from £255,000 to £50,000.
A new single tier pension worth about £140 per week is to be introduced.
Inheritance tax is currently levied at 40% on estates valued above £325,000. This levy will come down by 10% if a person donated 10% or more of their estate to charity.
Business and Capital
Corporation tax is to be reduced by 2% from next year.
Capital Gains Tax (CGT) annual exemption
The annual exempt amount for CGT will increase from £10,100 to £10,600.
The annual exemption amount will increase in line with the consumer price index rather than the retail price index.
Stamp Duty Land Tax
Plans to reform the stamp duty land tax rules applied to bulk purchases for residential properties have been announced in a move to try to strengthen investment into residential property.
Enterprise Investment Schemes
Income tax relief will increase from 20% to 30% along with -
• an increase in the maximum size of qualifying company,
• the maximum amount that can be invested in one company and
• the annual amount that can be invested.
Higher earners will have the chance to offset the fall in their in April by taking advantage of new tax breaks for investing in small companies.
Venture Capital Trusts
There will be an increase to the maximum size of qualifying company that can be invested in.
The lifetime limit will double from £5 million to £10 million.
Let us know what you think and how it will affect you.