Thursday, 21 March 2013

Budget 2013 Summary

Yesterday, the Chancellor delivered his "Budget for an aspiration nation" and as with most political addresses, there was a whole load of waffle, so we're thrown together some of Mr Osborne's key points:

General Economy:
  • Growth forecast: 0.6% in 2013, 1.8% 2014, 2.3% 2015, 2.7% 2016, 2.8% 2017
  • OBR forecasts that the UK will avoid a second quarter of negative growth
  • Deficit predicted to be 7.4% this year, falling to 2.2% by 2017/18
  • OBR forecast for global economic growth, world trade and Eurozone growth revised downwards
Construction and Property:
  • Infrastructure spending to increase from 2015 by £3bn per year; £15bn of extra capital expenditure over the next decade
  • Assistance to homeowners with Help to Buy scheme
  • New shared equity loans for new build homes
  • A package of measures to increase the supply of low-deposit mortgages for credit-worthy households including a government-backed mortgage guarantee scheme from January 2014
Jobs and Employment:
  • In the last year, for every job lost in the public sector, 6 have been created in the private sector
  • Unemployment expected to continue to fall
  • 1% public sector pay limit for 2015/16
  • CGT relief for sales of businesses to employees
  • New single tier pension brought forward to April 2016
  • Personal allowance for income tax raised to £10,000 from 2014/15 and the higher rate threshold increased by £415 to £41,865
  • Tax-free employee loans increased to £10,000, potentially benefiting employees travelling long distances to work
  • CGT relief for sale of businesses to their employees
  • Employment allowance: up to £2,000 for businesses and charities to set against their employer national insurance contributions from April 2014
  • Abolishing stamp duty on shares traded on growth markets such as AIM from April 2014
  • Single rate of corporation tax of 20% from April 2015
  • Complex marginal rate of corporation tax abolished from April 2015 when main rate & small companies rate both 20%
  • NIC contracting out abolished for defined benefit schemes
  • Bank levy up to 0.142% from 2014
  • Many measures to counter tax avoidance and evasion
Other Important stuff:
  • Tax incentives for manufacture of ultra-low emission vehicles
  • Schools, health protected from 1% cut; also local government and police, and overseas aid
  • A new tax-free childcare scheme from autumn 2015, to provide 20% of childcare costs up to £6,000 per child per year, for children aged under 12.Fuel duty has been frozen for the last 2 years. This September’s increase cancelled
Things we'd need to Google to categorise:
  • Budget 2013 fiscally neutral overall
  • Inflation target for CPI is confirmed as 2%
  • New regime for taxation of shale gas
  • A limited one year extension of capital gains tax reinvestment relief for Seed Enterprise Investment Schemes
  • Increase rates of above the line R&D tax credits to 10%
And as a reward for reading through the whole thing, we've saved the best for last - Beer duty will be cut by 1p per pint!