The highlights
The Chancellor delivered some good news on the personal allowance threshold, which has increased to £9,205 and the top-rate tax threshold, which has dropped to 45%. A U-turn on child benefit reforms will mean fewer families will lose it, but you'll have to wait until 2013 for any of this to take effect.
![Chancellor Spring Budget Chancellor Spring Budget](https://res.cloudinary.com/viditdns/image/upload/v1533880190/assets/img/blog/chancellor-spring-budget.png)
It adds up to some small points:
- Personal allowance up another £1,100 to £9,205;
- Top-rate tax dropped to 45%; but 300,000 people will fall into the top-rate tax band as the threshold is reduced from £42,475 to £41,450.
- Semi-U-turn on child benefit reforms;
- New cap on tax reliefs set at 25% of total income for anyone claiming more than £50,000 in a year, but no significant change to pensions’ relief.
- Government pledged £20billion worth of guarantees to banks to encourage them to offer cheaper loans to small- and medium-sized businesses
- Simplification of the way small businesses are taxed from April 2013: firms turning over up to £77,000 will be taxed on the cash passing through their business.
- Corporation tax for small firms will remain at 20%; the basic rate will fall to 24% from April 2012, down from the current 26%; then reduce to 23% in 2012 and 22% in 2014.
- The 3.02 pence per litre fuel duty increase will take effect on 1 August 2012 as planned.
DNS will keep you posted and explain more as things begin to take effect.
Any questions? Schedule a call with one of our experts.