BUDGET COVERAGE - 2012
The Spring Budget will take place at 12.30 On Wednesday 21st, and we will be providing our usual coverage including:
. Our website will have information about the new provisions within hours of the Chancellor’s speech, updated during the afternoon and early evening.
. Tax partner Mike Horne will be available for consultation, either by telephone on our normal numbers or at our dedicated email address: email@example.com.
. Our usual full summary of all the provisions will be on our website during the morning of Thursday 22nd March.
There have been a few budget leaks and some speculation in the press already about what the Chancellor will report.
Top of the list is the news that George Osborne is considering cutting the 50p top rate of income tax. Newspapers reported speculation that the tax on earnings over £150,000 could be reduced to a 45p rate or scrapped entirely in return for tax cuts for low earners.
However there are continuing rumours that Liberal Democrat support for any changes to the 50% tax rate is dependent on some form of ‘Mansion Tax’ being included in the Budget.
Meanwhile, early rumblings suggested that higher rate tax relief on pensions could be at risk in the Budget but this seems less likely now. But don’t expect the Chancellor to leave pensions alone completely: there’s a good chance he may introduce some changes (only time will tell!).
Tax avoidance is likely to be another popular topic. The Chancellor has already confirmed he will be "coming after" stamp duty avoidance with "aggressive" new measures. He said buying homes through a company to avoid the tax was "unacceptable" and pledged to "come down on that practice like a ton of bricks".
There’s also the possibility of a general tax avoidance law but the announcement of a consultation/review only is more likely – with legislation some years away from being implemented.
Businesses will be hoping for some positive news, and the Chancellor may look to reduce the Corporation Tax rate, or boost employee incentivisation.
One thing’s for sure: it’s going to be a difficult Budget for George Osborne. On the one hand he needs to stick to his budget deficit reduction programme. On the other hand growth hasn’t been as good as expected and he’ll want to do something to stimulate that – without much room for manoeuvre.
Whatever the news, you’ll be able to read it on www.burgesshodgson.co.uk. So please visit the website to keep up-to-date on the breaking Budget news.
As always, if there is any further information we can provide concerning the above, or if we can help in any other way, please do not hesitate to contact us on 01227 454627 and ask to speak to an available Partner, or e-mail us at firstname.lastname@example.org