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8/2/2019 Budget 2012 Update Presentation
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David Bennett
22 March 2012
8/2/2019 Budget 2012 Update Presentation
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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
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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
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.