Insight
Welcome to our regular
e-newsletter, 'Insight', highlighting current issues that could be affecting you and/or your business, as well as technical updates to recent changes in tax legislation. |
|
For further information on any of these topics please get in touch with your usual contact at Henderson Loggie.
If you're not currently one of our clients and would like further information please contact our enquiries team. |
|
|
 |
A Balanced Budget?
With 21 March almost upon us, the media continues to speculate on what George Osborne will unveil in his 2012 Budget.
But how will the Coalition Government manage to strike a balance between sticking to the deficit reduction programme and providing the right environment for growth? We will watch on Wednesday as he navigates his way through a range of new measures, but for now, we share with you some of our predictions below.
Whatever measures the Chancellor decides to implement, we will provide you with our full expert analysis on Friday 23 March.
To find out how the announcements could personally impact you or your business, please do not hesitate to contact your usual adviser.
|
Corporation Tax
Corporation tax currently stands at 26%, and is due to reduce by 1% annually, reaching 23% by April 2014. If this really is a ‘Budget for business’ then we may see an acceleration of the rate reductions. This could take the shape of increased annual reductions, and even the announcement of a commitment to a target of a 20% flat rate of corporation tax.
|
Personal Allowance
It can be predicted with confidence that George Osborne will take more low earners out of income tax, by increasing the personal allowance. How much it will go up by is uncertain, but with the long term aim of raising it to £10,000, it is possible that it will be raised by a further £1,000. The Chancellor is also signalling an end to the 50p top rate of tax, reducing to 45p in the short term.
|
National Insurance Contributions
An attractive measure for employers would be a targeted reduction in National Insurance contributions to provide an incentive for employers to hire new staff.
|
Patent Box
The new Patent Box rules take effect from April 2013 and are intended to increase the UK's competitiveness, stimulate innovation and encourage investment in the UK. We expect there to be further refinement to the new rules on Wednesday.
|
Pension Relief
An attractive target for the Chancellor is the pension relief and he may look to reduce pension relief for higher rate tax payers, which would raise additional revenues for the Treasury.
|
|
