Budget 2012 overview

Robyn Hughes

This year’s Budget targeted three main areas; a stable economy; a fairer, more efficient and simpler tax system; and reforms to support growth. With little room for manoeuvre the Chancellor delivered a fiscally neutral Budget, reducing taxes for lower earners, while increasing taxes in other areas. Our Budget report is designed to help you to identify the areas where we may be able to help you – please contact me if you think we can.

The Budget and your Businesses

Budget 2012 was designed to prove that the UK ‘unashamedly backs businesses’ according to Chancellor George Osborne. Key announcements saw the corporation tax cut accelerated to 24 per cent this year, but other announcements included R&D changes and proposals for the simplification of tax for small businesses. For more on how the Budget 2012 affects businesses click here.

The Budget and your Finances

In a Budget which pledged to lift the lowest paid out of tax and continue to tax higher earners, the Chancellor will accelerate the increase of the income tax threshold, introduce income tax on child benefit for larger incomes, and restrict the age related personal allowance. For more on how the Budget 2012 affects your finances click here.

The Budget and VAT and Indirect Taxes

After warnings earlier in the week, stamp duty land tax on property valued over £2 million is to be raised from 5% to 7%, while at the other end of the scale, tobacco duty will increase by 5 per cent above inflation. Read more on VAT and Indirect taxes and the Budget 2012 here.

Tax Rates and Allowances 2012 – 2013

These tables show the latest tax rates and allowances that will come into effect on 6 April 2012.

Other Budget 2012 Announcements

Tax avoidance came under the spotlight again this Budget, with the announcement of General Anti-abuse Rules (GAAR) and other smaller avoidance measures. Alterations will also alter carbon price floor regulations and Gift Aid concessions. For more details on the other announcements within the Budget 2012 click here.

If you would like a paper summary or an electronic Budget Summary then please email us at help@hsj.uk.com