Budget 2012 Update Presentation

8/2/2019 Budget 2012 Update Presentation

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David Bennett

22 March 2012


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Top rate of tax income over 150,000

2011/12 - 50%

-

2013/14 - 45%

2014/15 - ?


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Personal Allowance

2011/12 - 7,475

2012/13 - 8,105

-

,

Higher Rate Threshold

2011/12 - 42,475

2012/13 - 42,475 2013/14 - 41,450


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Age Allowance Simplification

2011/12 - 9,940 (65-74) & 10,090 (75+)

2012/13 - 10,500 (65-74) & 10,660 (75+)

2013/14 - Not available for those born after 5April 1948


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Rate 2011/12 2012/13

0% 0 - 7,475 0 - 8,105

20% 7,475 - 42,475 8,105 - 42,475

40% 42,475 - 100,000 42,475 - 100,000

60% 100,000 - 114,950 100,000 - 116,210

40% 114,950 - 150,000 116,210 - 150,000

50% 150,000+ 150,000+


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Rate of NIC 2011/12 2012/13

0% (LowerEarnings Limit)

0 - 5,304 0 - 5,568

r maryThreshold) , - , , - ,

12% 7,225 - 42,475 7,593 - 42,475

2% 42,475+ 42,475+


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Deferment of dividends and bonuses

Receipts basis Temporary loans pending top rate reduction

Benefit in kind charge

Overall saving 3%+ of gross Anti Avoidance?


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Tapered withdrawal wef 2013/14

Income limits:

Up to 50,000 full child benefit

-

, ,

60,000 no child benefit

Applies to higher earner (not household income)

Benefit payment unaffected withdrawaloperates through income tax charge


10/27

Maximum scale charge - % of list price

2012/13 2014/15 - increase by 1% (max 35%) 2015/16 2016/17 - increase by 2% (max 37%)

2016/17 3% diesel supplement removed

Fuel Charge 2012/13 - 20,200 x multiplier %


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2011/12 2012/13 2013/14 2014/15

SmallProfits Rate

20% 20% 20% 20%

300,000)

Main Rate(above

1.5m)

26% 24% 23% 22%


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!2011/12 2012/13

Annual InvestmentAllowance 100% 100%

AIA limit 100,000 25,000

Writing DownAllowances (plant& machinery)

20% 18%

WDAs (integral

features & carsover 160g/km)

10% 8%


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From 2013

Lower rate of Corporation Tax 15.2% decreasing to10% by 2017

Profits from

Patent royalties & sale of patents

Profits from sale of items incorporating patent

Active ownership / development conditions


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"

2011/12 2012/13

Annual Exemption 10,600 10,600

Higher Rate 28% 28%

Entrepreneurs

Relief Rate

10% 10%

ER Limit 10m 10m


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"#$

Enterprise Management Incentives (EMI)

Entrepreneurs Relief on EMI shares acquired after 5April 2012 10%

New limit - 250k (currently 120k)

Consultation on share option schemes generally expect new / simpler schemes in future?


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#%&

#' 50% Tax Relief on up to 100,000 investment in share

capital EG 50,000 invested

50% tax relief = 25,000

e uc e rom ax Capital Gains Tax Rollover

Permanent rollover on 2012/13 gains

Capital Gains Tax

Exemption on Sale of EIS Co


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#%#' (

Newly incorporated company (


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#%#' ()

Qualifying trade exclusions:

Farming Leasing

Feed in Tariff Electricity Generation (except

y ro anaero c genera on

Property Investment

Hotels, Residential Care Homes

Banking / Financial Services

Legal & Accountancy

And many more


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2011/12 2012/13

Nil Rate Band 325,000 325,000

Reduced Rate n/a 36%


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'

36% Rate on Estate instead of 40%

When you give 10% of net estate to charity

Net Estate = Estate less

Amounts attracting Business Property Relief

Spouse Exemption Nil Rate Band


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* %No Charitable

LegacyWith Charitable

Legacy

Estate (exclbusiness)

1,650,000 1,650,000

2 x Nil Rate Bands 650,000 650,000

Net Estate 1,000,000 1,000,000

Charitable Legacy 100,000

IHT at 40% / 36% 400,000 324,000

Family receives 1,250,000 1,226,000


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Residential Property

7% charge on 2m+

Residential Property purchased through companies

#+,-

15% charge 2m Threshold

Annual charge on 2m+ properties held in companies 2013/14

More detail to be announced


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*&

Stamp Duty Land Tax

Corporate Envelopes Backdated legislation on future avoidance

General Anti-Avoidance Rule

Targeted at artificial and abusive tax avoidancescheme

Consultation

Legislation from 5 April 2013

IR35 Personal Service Companies


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*&

Pension contributions to family members

Removal of tax & NIC advantages From April 2013


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Cash basis for small unincorporated business

2013/14 Turnover under VAT threshold

Merger of operation of NIC & Income tax

#

Continue as separate taxes But operated consistently


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VAT threshold 2012/13 - 77,000 Tax Relief on pension contributions unchanged

50k Cap on other tax reliefs detail to follow

Controlled Foreign Companies reform wef 5/4/12 Personal tax statements How we spent it


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David Bennett

ax ar ner

Moore and Smalley

[email protected]

Moore and Smalley LLP is a limited liability partnership registered in England and Wales: No. OC313896.

Registered office: Richard House, 9 Winckley Square, Preston, Lancashire, PR1 3HP. The term "partner" indicates a member of Moore andSmalley LLP who is not in partnership for the purposes of the Partnership Act 1890. A full list of members is available from our registered office.

Moore and Smalley are registered to carry on audit work by the Institute of Chartered Accountants in England and Wales and authorised andregulated by the Financial Services Authority.

Documents

Budget 2012 Update Presentation