Welcome to the 2012 Budget Newsletter from Connolly Accountants Ltd

Chancellor George Osborne began his third Budget speech with a pledge to 'reward working families and support growth', through 'far-reaching reform' of the UK tax system.

The Chancellor's statement contained key announcements on personal and business taxation, including confirmation that the 50p headline rate of income tax will be cut to 45p from April 2013. Confirming recent speculation, the Chancellor emphasised that the rate has 'damaged competitiveness' and raised 'next to nothing'.

Meanwhile, personal tax allowances were also a significant focus of the Chancellor's speech. With the income tax personal allowance set to rise to £8,105 next month, the Chancellor confirmed that a further rise will take place in 2013, taking the allowance to £9,205. However, age-related tax allowances are to be frozen, and will stop for anyone turning 65 after 5 April 2013.

Among the key measures of significance for business was a doubling of the planned reduction in the headline rate of corporation tax, which will see the rate fall from 26% to 24% in April 2012. Individuals and partnerships in business whose turnover is up to £77,000 are also set to benefit from 'radical reform' of the tax administration system.

For a detailed overview of the Budget Report and what it means for you and your business, visit our Report summary here.


WHAT THEY SAID

'This Budget supports working families. It unashamedly backs business. And it is on the side of aspiration.'
Chancellor George Osborne

'Millions will be paying more so that millionaires can pay less.'
Ed Miliband, Labour leader

'By putting more money in the pockets of ordinary people, the Chancellor has provided a much-needed confidence boost … if businesses were looking for more, it was in the area of deregulation.'
John Cridland, Confederation of British Industry

'We asked for a Budget with long-term measures to help to instil confidence, rather than a barrage of micro-measures that have a limited impact on the ground.'
John Walker, Federation of Small Businesses


FOR THE FULL BUDGET ANNOUNCEMENTS VISIT:

http://www.hm-treasury.gov.uk/budget2012_documents.htm


ON OUR WEBSITE

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Essential business advice
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