Chancellor George Osborne announced a number of changes in his 2012 Autumn Statement which are due to take effect shortly. Here’s a summary:
Corporation Tax – this is due to fall to 21% from April 2014 although there is currently great pressure on the Chancellor to reduce this earlier.
Income Tax – The top rate of tax is due to fall from 50% to 45% from April. Controversially, many banks have delayed paying bonuses until after this date to take advantage of the lower rates.
Personal allowance – Due to increase to £9,440 from April 2013; the Lib Dems want to see it at £10,000 and so they may get their wish a bit earlier than expected.
Tax relief on pensions contributions – this is due to be capped at £40,000 from April 2014. However, current predictions are that this will drop further still to £30,000. Watch this space…..
We’ll be tweeting live on Budget Day (20th March) and following with a Budget Summary later that afternoon.