The Chancellor will present his
Budget for 2012 on Wednesday 21 March 2012, laying out the Government’s plans
for public finances and the economy for the coming year.
Following another difficult financial year speculation is unsurprisingly rife, as to the key proposals the Chancellor will unveil before us.
A Budget proposed “......... for working people”, “............... for investment”, “............. for growth”, we hear, the usual suspects!
With debate still out over the success of the ‘50p income tax rate’, will we see a drop in the top rate of tax and a complete shift in policy with a direct attack on wealth with the introduction of a ‘mansion tax’?
High earners could be targeted again with the removal of tax relief on pension contributions, or perhaps a further cap on the eligible contributions that can be made. Again we hear whispers that ‘capital gains tax’ rates, currently at 28% (18% for basic rate taxpayers), could be aligned with ‘income tax’ rates and the possible scaling back of the annual exemption for higher earners.
The Government could look to assist so called low earners, by accelerating the ‘£10K personal allowance’, thereby removing a number of earners out of the tax system altogether. An uplift in the ‘basic rate tax band’ would also see a section of taxpayers no longer being faced with higher rates of tax.
‘Capital taxes’ could be on the agenda, as the Government may seek to increase the ‘nil rate band’ for inheritance tax purposes, having seen the allowance frozen in recent years.
There has also been widespread controversy over the proposed overhaul of the ‘child benefit’ system – will the Chancellor hold strong to his much scrutinised plans?
Will George have one or two surprises up his sleeve for the big day or will we be faced with a low key performance, opting instead to play safe with an attempt to please all. Come Wednesday afternoon all will be revealed as to the Government’s plans for ‘collecting tax’, ‘borrowing’ and ‘spending’ as we enter the new financial year...
For further information/advice on this subject please contact Ward Williams (www.wardwilliams.co.uk)
Following another difficult financial year speculation is unsurprisingly rife, as to the key proposals the Chancellor will unveil before us.
A Budget proposed “......... for working people”, “............... for investment”, “............. for growth”, we hear, the usual suspects!
With debate still out over the success of the ‘50p income tax rate’, will we see a drop in the top rate of tax and a complete shift in policy with a direct attack on wealth with the introduction of a ‘mansion tax’?
High earners could be targeted again with the removal of tax relief on pension contributions, or perhaps a further cap on the eligible contributions that can be made. Again we hear whispers that ‘capital gains tax’ rates, currently at 28% (18% for basic rate taxpayers), could be aligned with ‘income tax’ rates and the possible scaling back of the annual exemption for higher earners.
The Government could look to assist so called low earners, by accelerating the ‘£10K personal allowance’, thereby removing a number of earners out of the tax system altogether. An uplift in the ‘basic rate tax band’ would also see a section of taxpayers no longer being faced with higher rates of tax.
‘Capital taxes’ could be on the agenda, as the Government may seek to increase the ‘nil rate band’ for inheritance tax purposes, having seen the allowance frozen in recent years.
There has also been widespread controversy over the proposed overhaul of the ‘child benefit’ system – will the Chancellor hold strong to his much scrutinised plans?
Will George have one or two surprises up his sleeve for the big day or will we be faced with a low key performance, opting instead to play safe with an attempt to please all. Come Wednesday afternoon all will be revealed as to the Government’s plans for ‘collecting tax’, ‘borrowing’ and ‘spending’ as we enter the new financial year...
For further information/advice on this subject please contact Ward Williams (www.wardwilliams.co.uk)
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