• The start of reducing the 50% tax band.  Probably to 45% from April 2013 and then back to 40% the following year.

  • Acceleration in raising the personal allowance limit to £10,000 per annum.

  • We're unlikely to see a "mansion tax" (on properties over £2M) being brought into play.

  • It's very unlikely that the pension tax free lump sum pot will start to be taxed (this would only discourage savers!).  More likely that the Government will reduce the cap on how much people can pay into a pension tax free pot (perhaps from £50K to £30K per year).

  • An increase in cigarettes and maybe beer.

  • Fuel duty - the anticipated 3p rise could be frozen for the time being to help motorists.

  • Corporation tax - this will continue to fall to 25% from April 2012.

  • AIA (Annual Investment Allowances) limit is to be reduced from £100,000 to £25,000 from April 2012

  • Inheritance tax - give 10% of your estate to charity and your tax rate goes from 40% to 36%.

  • Entrepreneur relief doubled to £10M.

  • Increased relief for investment in business - EIS relief at 30% could be doubled to £1M.

 

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