The Budget 2012 - The Headline Points


Below are the main headlines from the Chancellor's Budget 2012. Our tax experts are hurridly working through the figures and details of the full budget statement and will bring you more specific analysis in due course:

  • Growth forecasts are revised upwards for this year to 0.8% by the OBR.
  • The raise from 40p to 50p income tax only raised a third of what was predicted and may actually have raised nothing at all.
  • The top rate of income tax will be reduced to 45p from 50p from April 2013.
  • Personal Income Tax allowance will go up to up to £9205 from April 2013.
  • The headline rate of Corporation tax will be cut to 24% from next month. Greater than previously announced. This will fall to 22% in 2014.
  • The chancellor will 'clamp down' on stamp duty avoidance which is "morally repugnant".
  • The stamp duty rate on properties worth more than £2million bought through companies will be raised to 15%.
  • Stamp duty will rise to 7% for properties over £2 million from midnight tonight.
  • Following consultation: The government is to go ahead with plans to introduce a general anti-avoidance rule (or GAAR), to be brought into effect after the 2013 Budget.
  • There will be no changes to fuel duties that have already been set out.
  • Duty on all tobacco products to rise by 5% above inflation from 6pm today - this is the equivalent of 37p on a packet of cigarettes.
  • Vehicle excise duty has been frozen for road hauliers.
  • Child benefit to be removed gradually from those earning over £50,000.
  • Consultation started: Small firms (less than £77,000) will be taxed on amount of cash passing through their businesses rather than more complicated methods used for large companies - known as 'Cash-Accounting'.
  • The government is exploring "Enterprise Loans" to help younger people set up businesses.
  • Ultra-fast broadband is to be set up in 10 cities - including Manchester.
  • New enterprise zone announced for Deeside
  • Armed Forces: Personnel serving overseas will receive 100% relief on an average council tax bill.
  • "Investors have confidence that Britain can still pay its way" - UK is saving £36bn in debt interest repayments.

For more information about how the Budget 2012 will affect you and your business, contact specialist Tax Partner Tim Adcock on tel: 0151 255 2300 or email: tim.adcock@mitchellcharlesworth.co.uk.

If you would like to receive a complete Budget Summary from Mitchell Charlesworth's tax experts, simply sign up to receive our regular news and updates by completing the form on the left hand side of this page.
The Budget Red Briefcase

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