Budget 2012 Snapshot from Giles Warren Financial Ltd

Here are some of the changes in the March 2012 Budget

Income Taxes

  • Additional rate reduced to 45% from April 2013
  • Personal Income Tax allowance increased to £9,205 from April 2013
  • No changes to pension tax relief
  • Personal tax statement to be sent to 20m tax payers from 2014

Child Benefit

  • To be withdrawn from higher tax payers if someone in the house is earning more than £50,000 at the rate of 1% for every £100 earned over £50,000.

Pensions

  • New single tier pension to be around £140 and based on Basic State Pension and additional state pension
  • New single-tier state pension for future pensioners to be set at about £140 and based on contributions to replace Basic State Pension and additional state pension
  • Basic state pension to increase by £5.30 a week to £107.40 from April 2012

Housing

  • Stamp duty on residential properties over £2m that are bought via a company will increase to 15% from today.
  • Stamp duty on properties worth over £2m increases to 7% from midnight tonight.
  • Consultation on annual charge on residential properties worth over £2m that are already owned via a company.
  • Retrospective action to be taken on any scheme that evades the above new stamp duty charges.
  • Extra funding to help construction firms building new homes.

Business Taxes

  • Corporation tax cut to 24% from April 2012 and reduced to 23% in 2013 and 22% in 2014.
  • Simplified tax system for small firms with a turnover of up to £77,000.
  • Tax credit to be introduced for video games, animation and high end TV industries
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