Famous actress and celebrity Joan Collins, whose most well known role was as Alexis Colby in Dynasty has spoken out over the Coalitions unfair and unjust tax policies. Joan spoke up for hard working families who are paying high amounts of income tax and hit out at people on long term benefits and tax credits.
The most recent budget has done little for people paying UK income tax in 2012. If you do pay income tax you want a reminder of the 2012 budget changes and how they affect UK income tax.
The personal tax allowance threshold was increased to £8,105 from 6 April 2012, with a further rise to £9,205 pledged by 2013.
More significant to business owners is a welcome drop to 24% in the main Corporation Tax rate, helping to soften the continued impact of the 50% personal tax rate, which will be reduced to 45% from 2013. Even when combined, the rate cuts remain at such levels that the bottom-line for entrepreneurs is that profit extraction planning proposals can provide substantial tax savings.
Despite suggestions that a General Anti-Abuse Rule (GAAR) would be introduced from April this year, the Government has also confirmed that a summer of consultation will be undertaken and legislation won’t be introduced until next year, at the earliest. Specific anti-avoidance provisions have come in with immediate effect but this is more limited than expected.
There has been considerable media coverage regarding in anti-avoidance measures introduced will affect Stamp Duty Land Tax (SDLT). We are busy looking at new arrangements to replace the SDLT schemes affected by the new anti-avoidance legislation and are able to provide advice regarding SDLT and the wider tax implications of the Budget, alongside the range of effective strategies and planning available.
Congratulations to glamorous Joan Collins for raising her concerns and speaking up for middle England.
As always we recommend taking professional advice on tax and any other planning issue.
Ray Best can help you protect your financial future. To find out more, simply click here!