Posted by: WealthIFA | March 25, 2011

Financial News Update we 25/03/2011



Hope you have had a good few weeks?…

Well, I suppose you could say that the budget was a bit of a damp squib by all accounts this week, we knew most of what was going to be said after all but, to be fair, Mr Osborne didn’t really have a lot of room to move now did he?!…

Income Tax
Good news for those with earnings up to £100,000 with the personal allowance going up by £1,000 this year then to £8,105 per annum from next April although higher rate tax payers may not agree as more of them move into the higher rate as it is reduced?
 
But still, good news for higher earners as it is announced that the 50% rate is “only” a temporary measure.
 
CGT
There was a definite slant towards business investment with EIS (Enterprise Investment Schemes) receiving an up lift (subject to approval) in tax relief from 20% to 30%.
 
Additionally, an increase in entrepreneurs relief – a doubling of the lifetime limit on gains from £5m to £10m – will encourage further business investment which, in theory, will result in more businesses offering more jobs etc.
 
A removal of charges for non doms remitting income or capital if investing in British Business made it a hat-trick for British business investment!
 
IHT
If intending on leaving assets to Charity, the 10% reduction in IHT will be good news but may not help if no gift was intended in the first place? Will this encourage more to gift?
 
Misc
A £250 million commitment to first-time buyers – some solace to those struggling to raise deposits although a shame it is restricted to those buying new homes – will this mean more school fields are sold off?

The decision to scrap the fuel increase was well received but perhaps more should be done to reduce the level of tax we pay to fill up?…

It was always going to prove a hard budget, with so much anguish caused over the last few years (if not longer?) and the borrowing to fund the deficit forecast next year of £146bn, whilst an improvement on the £167bn from last year, is still the equivalent of spending just under £200,000 every day since before Christ was born…

“The State Will Provide?”…

It’s going to struggle for a while I think….

This Week …

Estate Planning

Six ways to shrink your tax bill: http://bit.ly/e1jDZG
What you must tell a client before being appointed executor http://bit.ly/gimflG
Govt tightens tax avoidance loopholes http://ow.ly/1bTXOR

Long Term Care

Cost of care in old age rises to average of £50000 http://ow.ly/1bR6td

Investments

VCTs need refocusing, not scrapping http://ow.ly/1bSVjF
New rules boost Reits http://ow.ly/1bU4jA
National Savings index-linked bonds to relaunch: http://bit.ly/gQU5vQ

Have a great weekend!…

Regards
Kieron

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