2012 Budget

The main things to be concerned about in the March 21st 2012 Budget are:

• From April 2013, the 50% additional rate of income tax will be cut to 45% and to 37.5% from 42.5% for dividends.
• The personal income tax allowance will rise to £8,105 from April 2012 and to £9,205 from April 2013. There will also be a freeze on existing age-related allowances from 6 April 2013.
• The basic rate tax limit reduces from £35,000 to £34,370 for 2012/2013 and £32,245 for 2013/2014.
• The State Pension will reform into a single tier pension for future pensioners and future increases in State Pension Age will take account of increases in longevity.
• The main rate of corporation tax will be cut to 24% from next month. By 2014 it will fall to 22%.
• Qualifying policy investments will be restricted to an annual premium limit of £3,600 from 6 April 2013, with transitional rules applying from 21 March 2012.
• The capital gains tax exemption remains frozen for 2012/2013 at £10,600.
• On the inheritance tax front, the Government is consulting on a range of topics. They include increasing the exempt amount that someone living permanently in the UK can transfer to a spouse or civil partner living permanently outside the UK.

A good concise summary of everything can be downloaded here:  budget 2012