The Chancellor announced a new 7% rate of stamp duty on properties sold for more than £2 million.
There was also some anti-avoidance provisions, including a rate of 15% for the purchase of residential properties valued at over £2 million via a limited company.
IR35 rears its ugly head again!
To quote the Treasury Budget document: “The Government is bringing forward a package of measures to tighten up on avoidance through the use of personal service companies and to make the existing IR35 legislation easier to understand. This will include HMRC strengthening specialist compliance teams, simplifying the way IR35 is administered, and consulting on proposals which would require office holders/controlling persons who are integral to the running of an organisation, to have PAYE and NICs deducted at source.”
It will be interesting to see what they are planning!
As announced in the June 2010 budget, the inheritance tax nil rate band will remain frozen at £325,000 until 2014/5.
As previously announced, from April 2012, a reduced rate of IHT of 36% comes in where 10 per cent of more of the net estate is left to charity.
As widely reported, the Chancellor announced that there will be a relaxation of the Sunday trading laws due to the Olympic Games for eight weeks starting on 22 July 2012.
Legislation will be introduced in Finance Bill 2013 to apply a cap on income tax reliefs claimed by individuals from 6 April 2013. The cap will apply only to reliefs which are currently unlimited. For anyone seeking to claim more than £50,000 in reliefs, a cap will be set at 25 per cent of income (or £50,000, whichever is greater).
This summary is published for the information of clients. It provides only an overview of the main proposals announced by the Chancellor of the Exchequer in his Budget Statement, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.