Finance and Accountancy Briefing

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Budget 2011 - Professional Practice Group


With little room for manoeuvre, the chancellor produced an optimistic Budget for business, mainly directed at the corporate sector. The reduction in the corporation tax rate, the increased generosity in the Enterprise Investment Scheme, and the relaxation in the non-domiciliary rules for those bringing fresh investment into the UK are all aimed at keeping companies in the UK and encouraging startups.

In years to come, the prospect of merging the income tax and national insurance regimes could lead to a significant reduction in employers’ administrative burdens (for partnerships/LLPs as well as for companies). At present, there is no suggestion that the national insurance differential between the self-employed and employees will change, but it is an area to keep an eye on.

With the 50% income tax rate remaining, in the short term, partners will continue to look at the tax efficiency of their financial planning.

Please download the full paper for a more in-depth look at the following topics:

• Income tax

• National Insurance (NI)

• Capital Gains Tax (CGT)

• Second homes

• Pension contributions

• Enterprise Investment Scheme (EIS)

• Inheritance Tax (IHT)

• Furnished Holiday Lettings (FHL)

• Charitable giving

• Domicile and residence

• Anti-avoidance

Tags: Pensions, Inheritance Tax, Capital Gains, Charity, NI, Income Tax, Enterprise.

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