Budget 2011
Wednesday 23 March 2011
Full Details - all 240 pages
As it happens
What we already know...
Firstly, of course, the old red box has been retired. But it will still do as an image.
The tax and NI rates for 2011/12 are mostly already known. And there's been a broad hint that the personal allowance will go up by £600 from April 2012.
There is a £250m package for new homes which, it seems , will help buyers who can only raise a 5% deposit. The Government and the builder will each put up 10%, presumably on a shared equity basis.
And we're off...12.33
High price of oil mentioned already...
"Private sector growth must take over from public sector debt" - wants low tax, competitive economy.
Tax simplification promised (or threatened, depending on your viewpoint). 43 complex tax reliefs done away with - 100 pages of legislation gone.
Income tax and NI to be merged or, to be precise, there will be years of consultation first.
Controlled foreign companies rules changed.
Corporation tax reduced by 2% not 1% and the 1% per year for the next three years. (But, for banks, bank levy rate increased to offset this cut.)
Employment legislation, health & safety regulations, and employment tribunal legal aid to be trimmed. Exemptions for some employers with less than 10 employees.
Planning permission rules relaxed.
EIS investment relief increased from 20% to 30% to help start-up firms.
Entrepreneurs relief up to £10m from this April.
Non-doms charge up from £30,000 to £50,000 for those over here for more than 12 years. But remittance basis relaxed if for investment in UK business. (Will be a statutory definition of residence.)
50% tax rate revenues to be reviewed - Osborne considers the rate as "a temporary measure".
Anti-avoidance measures on "high value properties".
Rate relief on small business extended from Oct 2011 to Oct 2012.
£250m scheme confirmed for first-time buyers of new-build properties.
Investment in science - and research and development tax credit doubled to 200% and then 225%.
Short-life assets capital allowances limits up from 4 years to 8 years.
Money for railways - and potholes.
21 new enterprise zones to be funded. Northern Ireland to have lower corporation tax rate, perhaps? And money for south-west water customers.
Green measures - and further announcement of Green Investment Bank (which can now operate form 2012, with more money, one year early.)
Funding for technical colleges.
Increase of work experience scheme from 20,000 youngsters to 100,000. A further 40,000 apprenticeships to be funded.
Pension changes - Hutton report broadly accepted for public sector.. And moving over many years to flat-rate state pension.
Changes to Gift-Aid scheme. And changes to Inheritance Tax - give 10% of your estate to charity, tax rate reduced by 10%.
Donations up to £5,000, no paperwork needed. So cash buckets will now get gift-aid relief.
Tax avoidance - three SDLT schemes, corporation tax capital gains, and "disguised remuneration".
And low items VAT from Channel Islands to be tackled? (How?)
Commitment to £10,000 personal allowance confirmed - £630 next year as another step on the way.
Per passenger tax to per plane tax not allowed; this year's duty rate will not take effect. Private jets will be taxed.
Approved mileage allowance up from 40p to 45p per mile. (Second 25p rate for over 10,000 miles not increased.)
Tobacco duty to increase by 2p above inflation.
The 5p increase in petrol duty, due next week, to be delayed until next year. (Fuel duty escalator to be cancelled.) And 1p duty of a litre from tonight.
Paid for by "fuel duty stabiliser" - tax on oil companies as oil prices rise. (Escalator can be reinstated if oil prices fall.)
That's it.
Off to read the detailed press releases.