Budget 2012 - key points for Private Clients
Date: Wednesday 21st March, 2012
Author: Barry Hallam
Today's Budget speech included a number of points for private clients. In advance of the detail, the main points are as follows.
Today’s Budget speech included a number of points for private clients. In advance of the detail, the main points are as follows:
- Personal Allowance to be increased to £9,025 from April 2013 for all.
- Age Allowance for those over 65 with modest income to be gradually withdrawn from April 2013.
- Top rate of income tax to be reduced from 50% to 45% from April 2013. Dividends top rate to be reduced to 37.5%.
- SDLT increased to 7% for houses over £2 million from midnight tonight with extra charges for such houses held in companies and trusts.
- Limits on the amounts of tax relief available where more than £50,000 claimed.
- Simplification of business taxation for small businesses (turnover less than £77,000) and consultation on the integration of income tax and National Insurance Contributions.
- Annual statement of tax paid to be sent by HMRC.
- No changes to pension tax relief rules.
- No change to VAT rate which remains at 20%.
- Increase in Enterprise Management Incentives relief from £120,000 to £250,000.
Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.
Keywords: 'Budget', 'Budget 2012', 'Chancellor George Osborne', 'UK budget day', 'Wednesday 21 March 2012', 'Personal Allowance', 'Age Allowance', 'SDLT'
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.
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