Budget Summary

Here's a brief resume of today's budget

INCOME TAX

From April 2013, the 50p top rate of tax will be cut to 45p.
Personal income tax allowance raised to £9,205 from April 2013, making 24 million people £220 a year better off.
New general anti-tax avoidance rule to be introduced.
Age-related allowances for pensioners to be simplified over time, starting in April 2013, creating a single personal allowance for all but ensuring no pensioner loses in cash terms.

TAX AVOIDANCE

HMRC increased number of staff. Tax avoidance/evasion clampdown.
CHILD BENEFIT
Will be phased out when someone in a household has an income of more than £50,000. It will fall by 1% for every £100 earned over £50,000.
Only those earning more than £60,000 will lose the entirety of the benefit.
UK ECONOMY
Independent Office for Budget Responsibility (OBR) revises up UK growth forecast for 2012 to 0.8% - from 0.7%.
Forecast for 2013 is 2%, for 2014 is 2.7%, and in each of the two years after that 3%.
Eurozone growth forecast for this year revised down by 0.8% to -0.3%.
UK inflation forecast to fall from 2.8% this year to 1.9% next year.

BORROWING

Borrowing this year to be £126bn - £1bn less than forecast in the autumn. Forecast to fall to £21bn by 2016-17.
Consultation to be held on offering gilts - government bonds - with maturity terms of more than 50 years.
HOUSING
From midnight, new stamp duty level of 7% for homes worth more than £2m. Any such homes bought through companies will pay 15%.
Extra funding to help construction firms building new homes.

HELP FOR BUSINESS

Corporation tax cut to 24% from next month. By 2014 it will fall to 22%.
Enhanced capital allowances for businesses setting up in new Scottish enterprise zones in Dundee, Irvine and Nigg. A Welsh enterprise zone to be created in Deeside.
Simplified tax system for small firms with a turnover of up to £77,000.
Government support for £150m of tax increment financing to help councils promote development and an extra £270m for the Growing Places fund.
Tax relief for the video games, animation and high-end television production sectors.
Government considering enterprise loans for young people to start their own business.
Relaxation of Sunday trading laws on eight Sundays during Olympics and Paralympics, starting July 22.

ARMED FORCES

PUBLIC SECTOR

Government evidence to be published on the case for regional public sector pay.
Option for government departments to move to regional pay structures for civil servants when current freeze ends.

ENERGY

"Major package of tax changes" to boost oil and gas extraction in North Sea, along with £3bn new field allowance west of Shetland.

JOBS AND SKILLS

OBR forecasts unemployment to peak this year at 8.7% before falling each year to 6.3% by 2016-17.
One million more jobs to be created in the economy over five years, OBR says.

FUEL, CIGARETTE AND ALCOHOL DUTIES

Duty on all tobacco products to rise by 5% above inflation from 18:00 today - the equivalent of 37p on a packet of cigarettes.
No change to existing plans on alcohol duty.
New duty on gaming machines at a standard rate of 20% and a lower rate for low-prize machines of 5% of net takings.
No change to existing plans on fuel duty. Vehicle excise duty to rise by inflation, but frozen for road hauliers.

PENSIONS

Automatic review of state pension age to ensure it keeps pace with increasing lifespans.
New single-tier state pension for future pensioners to be set at about £140 and based on contributions.
No other changes to Pensions Taxation.

TRANSPORT AND INFRASTRUCTURE

Extend electrification of the Transpennine route between Manchester and Sheffield. Further improvements to the lines between Manchester and Preston, and Manchester and Blackpool.
Funding for superfast broadband and wi-fi in the UK's 10 largest cities.

OTHER TAXES AND ALLOWANCES

Bank levy to be increased to 0.105% from January 2013 "to ensure that corporation tax cuts do not benefit the banks". The levy will raise £2.5bn a year.
New cap on tax reliefs set at 25% of total income for anyone claiming more than £50,000 in a year, but no significant change to pensions relief.

Created on: Wed 21 March 2012 16:43 Last modified: Wed 21 March 2012 16:46

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