Income tax - personal allowance will rise to £9,205 from April 3013.  However, the basic rate band threshold will be reduced to £41,450, pushing more taxpayers into higher rate.

Pensioners aged 65 and over currently receive age-related allowances of £10,500.  These will be frozen until the personal allowances for the rest of the population catches up.  Additional age-related allowances will start to be phased out from April 2013.

Implementation of a single-tier state pension, merging the basic and secondary state pension into one.  Full state pension will be worth £140 per week.

State pension age is to rise to 67 by 2026.  This will be "automatically reviewed" to ensure that it keeps rising if people continue to live longer.

The 50% top tax rate (those earning £150,000+) will be reduced to 45% from April 2013.

There will be a cap on tax relieves of 25% of your income for anyone claiming more than £50,000 in a year, but no significant change to pension relief.

Child benefit will start to be withdrawn from households where one person earns in excess of £50,000 per year.  All entitlement will be lost when someone earns in excess of £60,000.

From midnight on 21st March 2012 there is a new top rate SDLT of 7% on homes worth more than £2m.

There will be SDLT of 15% on the sale of a company that owns a home (corporate envelope).

Capital gains tax will be charged on overseas companies that own and sell homes in the UK.

There is a "new cash accounting" system coming in for unincorporated businesses with a turnover of less than £77,000 per year.

Corporation tax for large companies falls to 24% from April 2012 with further cuts to 22% by 2014.

VAT loopholes and anomalies to be removed :

  • Removal of exemptions on sports nutrition drinks and hot takeaway products in supermarkets.
  • Self-storage, static caravans and hairdressers' chairs will no longer be exempt.

Duties:

  • No change to the planned 3.02p increase in fuel duty due on 1st August 2012.
  • No change to the planned increase in alcohol duty (inflation + 2% = 5p on a pint).  However tax on tobacco went up by inflation + 5% from 6pm on 21st March 2012.  (37p on a packet of cigarettes).
  • New duty on gaming machines at 20% and 5% of net takings on low-prize machines

 

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