Wessex FM News

Contact the News Team:
Tel: 01305 250333

BUDGET: The Main Points

news_money_pounds.jpg

3:02pm 20th March 2013
(Updated 5:20pm 20th March 2013)

BUDGET 2013 INITIAL COMMENTS

Economic recovery is taking longer than expected

Growth targets have been reduced but no 'triple dip' recession

Economic growth forecast at 0.6% in 2013

OBR expects people will be worst off in 2015 than they were in 2010 under Labour

Individuals

Income tax personal allowance £9440 in 2013/14 and £10,000 in 2014/15 (3 million earners will pay no tax)

1p per pint cut in beer duty in April 2013 and beer duty escalator scrapped

Duty escalators remain for wine, cider and spirits

Planned fuel duty rise in September scrapped

Financial support for buyers of newly built homes, allowing them to buy a house with a 5% deposit

Government guarantees for mortgage companies to make mortgage market more attractive to buyers

£144 per person flat rate pension now from 2016

Planned Public Sector pay increase restrictions won't apply to Service personnell

Local businesses

20% flat rate of corporation tax for all companies

'Jobs Tax' - first £2000 per annum of employers' national insurance removed - 1/3 of SMEs should pay no employers' national insurance

Child care costs - up to £1200 of tax relief per child towards costs of child care

New tax relief to encourage the sale of businesses to employees

Better access for SMEs to Government spending projects

Tax incentives improved for investors in SME share capital

The following 2013 Budget Overview has been provided by Albert Goodman Chartered Accountants:

The Budget for the Aspiration Nation
The Chancellor, George Osborne, announced his Budget was "for people who aspire to work and get on" and that despite progress being made, there was still much more to do, but by "setting free the aspirations of this nation, we shall get there".
Mr Osborne stated our nation is in a global race and that he intends to build a modern, reformed state, bringing businesses to our shores with competitive taxes and by fixing the banks. A plan for this is already in place and Mr Osborne stated that the country's credibility relies on delivering that plan.
The Chancellor also announced that fines from banking sectors, representing the very worse values, are being put to use in the Armed Forces sector, representing the very best values.
The main measures announced were:
Businesses
"    Corporation tax main rate to be reduced from 23% in April 2013 to 21% from April 2014 and then to only 20% from April 2015, removing associated company problems and marginal rates of corporation tax;
"    An increase in the bank levy rate is to cover the cost of the reduced corporation tax rates;
"    Tax incentives for manufacturers of ultra-low emission cars;
"    A generous tax regime to be introduced for the extraction of shale gas;
"    Limit for the provision of tax free low-interest loans for employees will be increased from £5,000 to £10,000 from April 2014;
"    Above the line tax credit on qualifying costs incurred from April 2013 to be increased to 10% to encourage research and development activity for large companies;
"    Employment Allowance - Up to £2,000 off an employer's NIC bill in each tax year from April 2014.
Individuals and employees
"    Seed EIS capital gains exemption holiday to be extended, but limited only to 50% of the gain reinvested for 2013/14;
"    From April 2014, a new CGT exemption for the disposal of a controlling shareholding into an employee ownership structure;
"    NIC/income tax breaks on employee shareholder ownership on the first £2,000 in share value for shares issued from 1 September 2013;
"    The first £50,000 of gains on employee shareholder ownerships will be exempt from CGT;
"    Tax reliefs for private investment in social enterprises;
"    Abolition of stamp duty on shares on AIM or other growth markets;
"    Working parents to be given tax free child care vouchers per child, worth up to £1,200 a year;
"    Ex-gratia payments to be given to people who took out annuities with Equitable Life pre 1992;
"    Social care costs to be capped at £72,000 from 2016;
"    Tax free personal allowance to be increased from £9,440 from April 2013 to £10,000 from April 2014;
"    New Help to Buy scheme with two elements: Government to lend up to 20% of the deposit, interest free in first 5 years, on a new build for anyone wishing to move up the property ladder, regardless of income, for housing with a value of not more than £600,000. 5% deposit from individual also needed. Provision of mortgage guarantees for anyone wanting to move to old/new properties from 2014, with £130 billion available over a 3 year period.
Other
"    The "largest package of measures" to counter avoidance and evasion of tax will also be announced, targeting the use of partnerships, LLPS and corporate/offshore structures;
"    Names of tax scheme promoters to be announced;
"    September fuel duty increase to be cancelled;
"    Beer duty escalator to be abolished, with a cut in beer duty of 1p from Sunday.
This is an overview of the main announcements made today and more detail will be provided tomorrow in our full Budget summary.
________________________________________

 

 

 

 

 

Sign up for the latest local news direct to your inbox


Share This Story

Submit this page to redditDelicious
brewery square clock

brewery square clock

The Wessex Word

See the latest wrong guesses and win cash!

The Bun Run

Request the cakes for your workplace!

Book Your Table

For sales in January and March

Free Fuel Friday

Find out how to get your car sticker

Dorset Webcams

Take a look around our beautiful county

Book our Disco

Have DJ Owen at your party or celebration!

Meeting Room Hire

Come to Wessex FM for your meeting or conference

Close

We Use Cookies

This website uses cookies to store information on your computer.

By using this website you accept the use of cookies as explained in the terms of our cookie policy.