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Budget 2011 (summary)

TaxPosted by Tony Hawkins Thu, March 24, 2011 16:09:21

Much of the 2011 Finance Bill has already been announced (changes to allowances, furnished holiday letting etc), further new measures include:

  • Main Corporation tax rate down to 26%.
  • 43 complex tax reliefs abolished.
  • CGT: annual alowance increases to £10,600, Entrepreneurs' Relief to £10 million.
  • EIS relief to increases to 30% whilst doubling annual investment limits too.
  • 21 new Enterprise Zones, relaxation on planning, increases in renovation allowances.
  • Small company R & D relief doubled.
  • Capital allowances: short-life assets cut off increased to 8 years.
  • Approved mileage allowances up by 5%, volunteer drivers may claim actual expenses.
  • More incentives for green energy.
  • A review and crack down on SDLT, CGT and income tax avoidance.
  • Individuals: the 50% tax rate not be made permanent.
  • Long term resident non-doms face a £50k tax charge with relaxation in tax rules for bringing capital into the UK, a statutory non-residence test to be introduced.
  • The Personal allowance rises from £7,475 to £8,015 in 2012.
  • Charities: a big shake up to make Gift Aid easier to administer.
  • IHT: donate 10% to charity and your IHT rate decreases by 10% too.

Other measures:
Reform of NICs

There will be a consultation on alignment of National Insurance with income tax. It may be some years before actual alignment can be achieved.

Please contacts Tony Hawkins with any questions you may have.

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