A summary of the more important planning points for clients arising from today’s budget.
Private Client
SEIS scheme will be extended.
Tax-free childcare vouchers to be introduced plus increased support for low-paid families.
Single-tier pension brought forward to 2016.
Equitable Life – additional help for those who bought with-profits purchasers on their with-profits before 1992 (by way of ex-gratia payments).
‘Help to Buy’. Interest-free government backed loans for newly built homes costing £600,000 or less. Mortgarge guarantees offered for loans to homeowners.
Fuel Duty Escalator. September fuel duty increase cancelled.
Alcohol duty escalator for beer is scrapped and beer duty cut (Beer will be a penny a pint cheaper).
Income Tax personal allowance to be raised to £10,000 from 2014 (a year early).
The amount which can be owed to an employer for a loan at a beneficial rate is to be increased to £10,000 from 2014.
The ‘exempt amount’ for IHT which can be transferred to a non-domiciled spouse is being increased to the current ‘nil band’.
Commercial
CGT relief to be extended for companies .
R&D ‘above the line’ credit being increased to 10 per cent.
AIM to be reformed by abolition of stamp duty on transactions.
Main rate Corporation Tax to be cut to to 20% from 2015 (the same as the small rate of CT).
Employment allowance – will allow employers to deduct £2,000 from their NI bills – an incentive to small business to hire more people.(from next year)
Benefits in kind on company cars will increase overall, but new lower rates are introduced for cars with low emissions of carbon dioxide.
Tax planning benefits of using limited liability partnerhsips (LLPs) are being limited.
General
A ‘massive’ package of measures to prevent tax evasion and aggressive tax avoidance.