Budget 2012 - key points for Private Clients

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• Age Allowance for those over 65 with modest income to be gradually withdrawn from April 2013.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. 

Source: http://feeds.lexblog.com/~r/MercerHole/TaxPlusBlog/~3/KS3fnIOK2nY/

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