Budget Day has been fixed for Wednesday 21 March. Of course, we already know much of what is likely to be in the Budget following the publication of draft legislation for consultation.
So what can we expect for 2012/13? We are not going to bore you by telling you everything. After all, not everyone’s interested in Manufactured Overseas Dividends or Controlled Foreign Companies; or, for that matter a new CT regime for Life Insurance Companies or even Climate Change Levy. Let’s just stick to a few ordinary every day matters such as:
• change in rates, allowances and thresholds for income tax, national insurance and tax credits;
• no increase in the annual exempt amount for capital gains tax;
• changes in the remittance basis charge for non-domiciled individuals;
• rules allowing non-domiciles to remit income or gains tax free where they do so for the purposes of making a qualifying investment;
• no statutory definition of residence to be introduced until 2013;
• changes in the rules about capital gains or losses on fund withdrawals from foreign currency bank accounts;
• Seed Enterprise Investment Scheme to be introduced and increases in thresholds for qualification for EIS and VCTs;
• no increase in the Inheritance Tax nil rate band;
• reduction to 36% (from 40%) in the rate of Inheritance Tax where 10% of the estate is left to charity – but make sure you don’t die before 6 April 2012;
• reduction in the main rate of Corporation Tax;
• changes to capital allowances rules including preferential rates for companies in certain designated areas investing in plant and machinery.
We are also likely to see the abolition of a number of tax reliefs arising from the initiative of the Office of Tax Simplification. It would also not be surprising to see anti-avoidance legislation as HMRC gets wise to the latest effective solutions for tax mitigation.
There may yet be changes before 21 March but if you have a burning desire to find out more about any of the above, please feel free to call our tax partner, Simon Topperman.