Posted by Stewart Wilkinson, Partner
The Budget was held on 23 March 2011. I have the following key points:-
- There was an emphasis on encouraging enterprise investment in the UK by increasing the lifetime Entrepreneurs’ Relief for capital gains tax to £10,000,000 so that any gains up to the amount of £10,000,000 are charged at 10% instead of the standard rate of 18% (or the higher rate of 28% for higher rate taxpayers).
- The charge for non-domiciled people resident in the UK has been increased from £30,000 to £50,000 if that person has been in the UK for twelve years, but there will be no tax charge for omitting income or gains into the UK in order to invest in a UK business. There was a promise not to make further changes to the rules for non-domiciles during this parliament.
- Tax relief on Enterprise Investment Schemes is also increased to 30% from 20%.
- There is now 10% relief on Inheritance Tax so this will be reduced from 40% to 36% if you leave 10% of your estate to charity.
- Consultation will take place on the provisions for making gifts of pre-eminent heritage assets to the state.
- Plans will be made to close down bonus schemes, SDLT avoidance, capital gains for companies and lifelong employee interest free loans.