Tue, Mar 20, 2012
We have updated our 2012 Budget Calculator with all the details we already have for this year’s Budget.
Hop over now to see if you are better or worse off.
Information has now been fully updated and taken from the HMRC Overview of Tax Legislation and Rates from Budget 2012:
- 2012/13 Income Tax and National Insurance Rates
- Tax Credits Changes for 2012/13
- State Pension Age and Amount Updates
- Capital Gains Allowances and Rates for 2012/13 – Frozen from 2011/12
- VED Figures for 2012/13 – Increase by RPI
- Child Benefit capping and taper for households where one income goes over £50,000. Starting from January 2013.
- Duties Figures for 2012/13
- Company Car Tax Rates for 2012/13
We have updated with all the details of the budget here and were the first to get you an updated budget calculator too!
Right, a breakdown of the Chancellor’s Budget 2012:
- Starting April 2013 (Tax Year 2013/2014), the Top Rate of Income Tax will be cut from 50% to 45%.
- The Personal Tax Allowance for Under 65s is to be increased to £9,205 from 2013/2014.
- Higher rate band to start from £32,245 from 2013/2014.
- New tax avoidance rules are to be added.
- Age-Related personal allowances are to be phased out so personal allowances for all age groups are at parity. However, measures will be taken to make sure pensioners do not lose out in real terms.
- All people born after 5 April 1948 will have a personal allowance of £9,205 – age allowances will be available to people born before that date only.
- Upper Earnings Limit on National Insurance to be reduced to £41,450.
- Cap on tax reliefs set to 25% of total income for anyone claiming more than £50,000 per year.
- Phased out once an income in the household crosses £50,000. Phased out at a rate of 1 percent for every £100 earned over £50,000 limit.
- This means people with an income in the household over £60,000 lose all child benefit.
- OBR forecast for growth revised upwards from 0.7% to 0.8%
- 2013 forecast is 2%, 2014 2.7% and 2015-2016 3%.
- Eurozone forecast down to -0.3% from 0.8%
- Inflation down from 2.8% this year to 1.9% next year
- To be increased to 0.105% from Jan 2013 – prevent corp tax cuts from benefitting banks. Should raise £2.5bn a year.
- £1bn less than forecast in the Autumn Statement, borrowing is now set to be £126bn this year. Forecasted to fall by £21bn by 2016/17.
- Gilts with maturing terms of over 50 years to be consulted on.
- OBR forecasting a peak 8.7% unemployment this year which will fall to 6.3% by 2016/17.
- OBR thinks a million more jobs to be made over 5 years.
- Stamp Duty at 7% for homes valued at more than £2 million, however if bought through companies, the rate will be 15%.
- More funding for construction firms.
- Corporation Tax, Main Rate, cut to 24% starting 2012/2013 – This was expected to be 25%. By 2014 it will fall to 22%.
- Enhanced capital allowances for new businesses in Scottish enterprise zones in Nigg, Irvine and Dundee, with a Welsh zone in Deeside, to be started.
- Tax system simplied for small companies with turnovers up to £77,000
- £150m of Government funds for councils to promoto development and £270m extra for the Growing Places fund.
- New tax reliefs introduced for animation, video games and high-end television production markets.
- Consideration being given to providing loans via the Government for young people looking to set up businesses.
- Sunday trading laws to be relaxed for the 8 week period of the games, starting 22 July.
- Afghanistan operation costs forecast to be £2.4bn below expectations.
- Savings will be used to provide £100m of improvements to military accomodation.
- Family welfare grant and council tax reliefs for armed forces personnel doubled.
- Government to publish evidence furthering the case for regional public sector pay.
- Government depts. to be given option to move to regional pay scales for civil servants once the current pay freeze comes to an end.
- Big changes in tax for North Sea oil and gas extraction firms along with £3bn new field allowance west of Shetland. Hopes to provide a boost.
- Tobacco products duty to rise 5% above inflation from 6pm today – equivalent to 37p per pack of cigarettes.
- No changes to alcohol.
- New duty introduced for gaming machines at 20% standard rate and 5% for low-prize machines of net takings
- Fuel duty frozen, VED to rise by inflation only, but VED for hauliers frozen.
- Fair fuel stabiliser to only allow above inflation rises in fuel if oil barrel price drops below $75 a barrel (£45).
- State pension age to be reviewed ongoing from now on to keep track of average lifespans.
- Single-tier state pension rate for future pensions to be around £140 per week and be contribution based.
- The Transpennine route between Sheffield and Manchester to have and extended electrification programme.
- Improvements to be made to rail lines between Preston and Manchester, and Blackpool and Manchester.
- Funding introduced for superfast broadband and wi-fi in the UK’s 10 largest cities, including Birmingham, London, Bradford.