The Budget…Good highlights
Tax expert and frustrated thespian, Tim Good, had the invited audience enthralled on Thursday morning as he delivered his unique budget analysis to 100 local business professionals on a glorious spring morning at the Royal Wimbledon Gold Club.
Following an introductory analysis of the politics of the budget from local MP Stephen Hammond, Tim highlighted some key points for business and individual taxpayers including some encouragement for business with further reductions in corporation tax rates and continued simplification of some areas of legislation. In addition the introduction of enhanced capital allowances on a greater range of assets, the new Patent Box rules offering 10% rates of corporation tax and the increase in the level of relief for expenditure on research and development provided a range of innovative and tax efficient opportunities.
On the personal tax side Tim explained the impact of the new tax on Child Benefits as well as the impact of reducing the threshold at which higher rate tax bites on our income (see this months Private Client newsletter) and the freezing of the age allowance for some pensioners with low income. There was also a discussion on the capping of tax reliefs to be introduced in the 2013 Finance Bill, limiting reliefs to a maximum of £50,000 or 25% of income in any tax year as well as an outline of the new General anti-avoidance (abuse) rules (GAAR) scheduled for introduction in the 2013/14 tax year.
In the end the much heralded increase in stamp duty to 7% on transactions over £2m (and 15% for transfers into corporate vehicles) was rather lost in the budget reaction to the ‘Granny’ tax and the ‘Pasty’ tax – a reference to the introduction of VAT on the sale of all hot food.