Budget 23/03/2011 – Key Points

Budget 23/03/2011

Key Points

  • Growth forecast 2011 – 1.7%
  • Down from 2.1%
  • Growth forecast 2012 – 2.5%
  • Inflation target to remain at 2.0%
  • OBR expected inflation to remain between 4 – 5%
  • Inflation forecast  for 2013 – 2.0%
  • National debt forecast to be 60% of GDP
  • Government to consult of merging Income Tax and National Insurance
  • Corporation Tax to reduce by 2% NOT 1% from April
  • And will continue to fall year on year
  • Entrepreneurs relief doubling to £10m from 6th April 2011
  • Non-domicile charge £50,000 if living in the UK for 12 years
  • Osborne: 50p tax rate should be a temporary measure
  • Rate relief holiday for small businesses extended to October 2012
  • £250m to help 1st time buyers of new builds
  • Shared equity schemes to help 10,000
  • R&D tax credit for Small Companies increased to 200% this year
  • 21 New enterprise zones to be created in England – to last for 25 years
  • INCLUDING THE BLACK COUNTRY!
  • 40,000 new apprenticeships for young unemployed
  • State pension age to increase automatically
  • Public sector pensions to be reviewed
  • Administration Gift aid to be simplified
  • Gifting 10% of estate to charity will reduce Inheritance Tax by10%
  • Measures to close tax loopholes which raise £1b a year
  • Income tax allowance to increase by £1,000 from 6th April 2011 – £7,475
  • Allowance to increase to £8,105 from April 2012
  • Enterprise Initiative Scheme relief increased to 30%
  • No duty increase for alcohol
  • Heavy goods haulage
  • Fuel duty – next week’s increase delayed until next year
  • 1p above inflation fuel duty scrapped
  • Fuel duty cut today from 6pm by 1p