The Budget headlines in less than 140 words:

Subscribers: click here for your summary.

Freeview: much of the 2011 Finance Bill has already been announced (changes to allowances, furnished holiday letting etc), further new measures include:

  • Main Corporation tax rate down to 26% (small company rate is 21%).
  • 43 complex tax reliefs abolished.
  • CGT: annual allowance increases to £10,600, Entrepreneurs' Relief to £10 million.
  • EIS relief to increases to 30% in 2011 whilst doubling annual investment limits in 2012.
  • 21 new Enterprise Zones, relaxation on planning, increases in renovation allowances.
  • Small company R & D relief doubled.
  • Capital allowances: short-life assets cut off increased to 8 years.
  • Approved mileage allowances up to 45p/mile, volunteer drivers may claim actual expenses.
  • VAT: changes to registration/deregistration thresholds.
  • More incentives for green energy.
  • A review and crack down on SDLT, CGT and income tax avoidance.
  • Individuals: the 50% tax rate not be made permanent.
  • Long term resident non-doms face a £50k tax charge with relaxation in tax rules for bringing capital into the UK, a statutory non-residence test to be introduced.
  • The Personal allowance rises from £7,475 to £8,015 in 2012.
  • Charities: a big shake up to make Gift Aid easier to administer. The maximum Gift Aid benefit limit increases to £2,500.
  • IHT (from 2012): donate 10% to charity and your IHT rate decreases by 10% too (that means 40% falls to 36%).

Other measures:
Reform of NICs

There will be a consultation on alignment of National Insurance with income tax. It may be some years before actual alignment can be achieved.

Subscribers
Follow the links in our Finance Act Planner for 2011/12 details of key SME measures.

 

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