23 March 2012
The 2012 Budget was presented by George Osborne on Wednesday 21st March. While there was much speculation in advance of the budget regarding the approach Mr Osborne would take, the major talking points have centred around the decision to lower the top rate of Tax & also the changes made to tax allowances for pensioners.
While strong criticism has been levied on the adverse changes affecting pensioners, and tax cuts for the wealthy, generally the budget has been deemed favourable for workers, with over 600,000 workers in Northern Ireland set to benefit from the increase in Personal Tax Allowances. The proposed cap on Child Benefits for family members in the upper tax bracket has also been relaxed to allow a phasing out of benefits between £50K - £60K, which was welcomed from all quarters.
The expected reduction of 1% in the main rate of Corporation Tax has been confirmed, however, Northern Ireland will continue to lobby for a substantial decrease in Corporation Tax to match the South’s attractive 12.5% rate to attract inward investment to boost the local economy.
Some of the main budget points are as follows:
- Personal Allowance to rise to £9,205
- Top rate of Tax for earnings over £150K cut form 50% to 45%
- Proposals for Tax simplification for small businesses
- 1% decrease in Corporation Tax from 25% to 24%
- Single tier state pension to be introduced & simplification of pensioners tax system
- Belfast set to benefit from funding for faster broadband
- Child benefits to remain unchanged for earnings up to £50k and phased out up to £60k
- Fuel costs set to rise by 3p a litre in August
- 5% rise above inflation for all tobacco products effective immediately.
If you wish to view our full budget summary Click here.
Should you wish to discuss how the budget will affect you or your business please feel free to contact Jonathan Abbott firstname.lastname@example.org