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.
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.