Budget 2012: the main measures

A round-up of the main tax announcements in today’s Budget. Click on a link below to read more on our blog about a particular measure. Click here to listen to a podcast discussing whether today’s Budget will help the UK tax system meet the goals of simplicity, predictability, fairness and supporting work.

GAAR to be introduced with a consultation on the detail

Personal tax

From April 2013 top rate of income tax will be cut to 45p

New overall cap on uncapped income tax reliefs

Capital gains tax on residential property held by non-resident non-natural persons

Real estate

7% SDLT charge on residential properties worth more than £2m

New 15% SDLT rate on acquisition of £2m plus residential property bought by resident or non-resident non-natural persons

Consultation on an annual charge for £2m plus residential property already held by non-natural persons

SDLT sub-sale relief scheme involving options closed down and GAAR to be extended to SDLT

Zero rate VAT on approved alterations to end

Changes to VAT treatment of self-storage

Business tax

Corporation tax rate to be cut immediately to 24%, falling eventually to 22% over the next two years

New allowances for the North Sea oil and gas industry plus a contractual approach to decommissioning

Increase in bank levy to offset benefit of extra corporation tax rate cut

Proposals to boost employee share ownership

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Morgan James

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