22 March 2012

UK Budget 2012 Review

Following the budget announcement yesterday by the UK Chancellor George Osborne, it seems that industrial energy consumers are positive with regards to the new Government plans to slim down bureaucracy for consumers, however some reservations remains with relation to the Carbon Reduction Commitment (CRC) and its proposed replacement.

There is a budget calculator here, where it can be calculated how the budget would affect you personally. Below we have outlined specific points relevant to businesses to note from the budget:

• Income tax
Top rate of income tax cut from 50p to 45p from April 2013

• Tax relief
New cap on tax reliefs set at 25pc of total income for anyone claiming more than £50,000 in a year.

• Corporation tax
Immediate 1pc cut in the headline rate of corporation tax, which will bring it to 24pc from April. Two further cuts in 2013 and 2014 will reduce corporation tax to 22pc
Consultation on simplifying tax for small firms with a turnover of up to £77,000.

• Bank tax
Bank levy to be increased to 0.105pc from January 2013 so that banks will not benefit from additional corporation tax cuts and the levy will raise £2.5bn a year.