Chancellor George Osborne has delivered his Budget for the coming year. Here are a few of the main points.
- The income tax personal allowance will rise to £10,000 from next year. It will rise from £8,105 to £9,205 from April 6 and to £10,000 in April 2014.
- The 50p tax rate for those earning income in excess of £150,000 will fall to 45p in April.
Capital Gains Tax
- Reliefs are to be introduced for sales of businesses to their employees.
- Stamp duty on shares traded on growth markets such as AIM will be abolished.
Taxing the rich
- The General Anti Avoidance Rule (GAAR) which comes into force later this year will be bolstered by recent tax disclosure deals with Jersey, Guernsey and the Isle of Man.
Cigarettes and alcohol
- 26p has been added to the price of a packet of 20 cigarettes.
- The price of a pint of beer is reduced by 1p but above inflation increases remain for other forms of alcohol.
- The increase in fuel duty expected in September has been cancelled.
- Corporation tax will fall to 24% from April, to 21% in April 2014 and to 20% in April 2015.
- An Employment Allowance is being created which will reduce National Insurance payroll taxes by £2,000 for every company.
Families with children
- Tax free childcare vouchers worth £1,200 per child are to be introduced.
- The Chancellor used his Budget speech to confirm that the flat-rate pension will be brought forward to 2016.
- The cap on social care spending in England will be brought forward to 2016 - to protect savings above £72,000.