Highlights from the Chancellor's speech this lunchtime:

"We are going to earn our way out of debt...keep Wallace and Gromit where they are...aggressive tax avoidance is morally repugnant."

Key new measures announced today:

From 21 March/22 March:

Stamp Duty Land Tax

  • From 21 March: a rate 15% on properties worth £2million + sold via a non-natural person
  • From 22 March: a 7% rate on properties worth £2million
  • From 21 March: block on sub-sale relief
  • Intention of Parliament to block avoidance - threat to act retrospectively.

From April 2012

  • Corporation tax main rate 24% (was set to be 25%)
  • Increase in Bank Levy
  • Capital allowances: new Enterprise Zones inc in Scotland, Wales and N.Ireland
  • Date tbc: Capital Gains Tax on residential property held overseas.
  • A limit on all uncapped income tax reliefs. An individual seeking to claim more than £50,000 of relief, a cap will be set at 25 per cent of income (or £50,000, whichever is greater).
  • Enterprise Management Initiatives (EMI) increase option limit to £250,000.
  • Increase in car fuel benefit multiplier to £20,200.

From April 2013

  • Top rate of income tax drops to 45%
  • Personal allowance increase to £9,205
  • Freeze on age related allowance (intention being to have a single personal allowance).
  • NEW TAX: Child Benefit Income tax charge on child benefit receipients with income over £50,000, calculated at the lower of £1 for every £100 of income over, or the child benefit received. At £60,000 of income no child benefit is payable.
  • Introduction of a General Anti-avoidance (abuse) Rule
  • Corporation tax main rate 23%
  • Small firms with a turnover up to £77,000 allowed to cash account (subject to further consultation).

 

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