Corporation tax – main rate to be 21% from April 2014, rather than the planned 22% rate.
Pensions tax relief – reduction of the annual tax free allowance from £50,000 to £40,000 per year. Lifetime allowance to reduce from £1.5 million to £1.25 million. Both with effect from 2014-15.
Personal income tax – 1% increase (rather than by inflation) for higher rate threshold from 2014/15 and 2015/16; individual allowance to be £9,440 and basic rate limit to be £32,010 from 6 April 2013. big tax increase for middle earners.
Capital gains tax annual exempt amount – 1% increase from 2014/15 and 2015/16 to bring it eventually up to £11,100 in 2015/16.
Inheritance Tax – nil rate band to be increase from £325,000 to £329,000 from 2015/16.
Capital Allowances – a temporary 2 year increase in the Annual Investment Allowance from £25,000 to £250,000 from January 2013, predominantly to support SMEs.
Property Taxes – no significant announcements – confirmation of no “Mansion tax”; no SDLT changes.
Bank levy rate to increase to 0.13% from April 2013.
ISAs – overall limit to rise to £11,520 from 2013/14; SME equities to be able to be held in stocks and shares ISAs.
Employee share ownership scheme – further details of this promised to be released.
Fuel Duty – no 3 pence fuel tax rise in January 2013 (not a delay of the rise, a cancellation).
Tax avoidance – “abusive” use of partnerships to be investigated; certain “loopholes” to be closed with immediate effect.
For fresh ideas, new possibilities and a value driven service go to Garside & Co LLP Chartered Accountants in London.