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Chris Mattos (from Randall and Payne) said:
The headline-grabbing measure was obviously the immediate decrease in fuel duty which I’m sure will be welcomed by people throughout the county.
Other positive measures included the proposed changes that should help promote investment in businesses by giving tax relief to the individuals. These include legislation to increase the rate of income tax relief given for individuals that invest in the Enterprise Investment Scheme, this is increasing from 20% to 30% and the doubling of the amount that may be invested.
Individuals that use their car for business have been suffering for some time as they have only been able to claim 40p per mile for the business miles that they travel. This amount covers the cost of the petrol but also the running of the car. With the increase in petrol of recent years an increase to 45p will be welcomed.
Many of the measures that will apply from 6 April 2011 had already been announced. Of these, the Chancellor emphasised the increases to personal allowance and made reference to the new amount that will apply from 2012 which will take individuals with incomes under £8,000 out of income tax. However, he didn’t emphasise that the higher rate tax threshold is being reduced so more will pay higher-rate tax!
There were some announcements made in respect of Capital Gains Tax. This included the amount of business disposals that an entrepreneur can make in their life time. This increases from £5m to £10m – in reality this will not affect many of Gloucestershire businesses, although for the ones that it does it offers additional tax savings of £900,000. The annual Capital exemption amount is going up from £10,100 to £10,600 in line with inflation.
George Osbourne also announced that non-domicile individuals that have been resident in the UK for more than 12 years will now need to pay £50,000 for benefiting on the tax treatment of only being taxed on the amounts that they bring into the country. There will also be a consultation on the rules that determine the residency of an individual. This is not before time given the greyness in this area and a number of recent cases – the idea is to create a statutory test to provide clarity and this will help many people to know where they stand.
For more information on how we can help you call Chris Mattos on 01453 763471
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