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Budget 12: What to expect from today’s Budget

This afternoon, the Chancellor will deliver his third Budget. With much of the direction of travel set out in previous fiscal set pieces, and a fair bit of leaking ahead of the big event, it is not expected to contain many surprises.

Here is a round-up of what you can expect to hear as Osborne takes to his feet in the House of Commons at 12.30pm.

He is expected to announce:

  • Houses worth more than £2m will face a new 7 per cent band of stamp duty. The £1.5bn in extra revenue will go to funding a quicker rise in the tax free income tax personal allowance towards £10,000.
  • The top rate of income tax will be cut from its current level of 50p to 45p from April 2013. He will also reveal the results of an HMRC review of revenue raised by the top rate of tax since it was introduced in April 2010.
  • The income tax personal allowance will rise to £9,205 in April 2013 before a likely rise to £10,000 by April 2014, a year earlier than previously expected.
  • From 2014, income tax payers will be sent a detailed breakdown of the tax they pay and how the Government spends the revenue.
  • The closure of loopholes allowing stamp duty to be avoided by purchasing the house through an offshore company or by exploiting rules put in place to stop developers paying stamp duty twice.
  • Changes to pensions tax relief are expected. This could be a reduction in the annual allowance to below the current level of £50,000 or a reduction in the rate of relief higher rate tax payers can claim.
  • A slight perking up of the country’s economic prospects. It is though the Office for Budget Responsibility will increase its forecast for growth in 2012 up 0.1 per cent to 0.8 per cent.

Money Marketing will be providing online news and analysis of the Budget this afternoon and a 16-page Budget special supplement with this week’s edition. Tomorrow morning Money Marketing editor Paul McMillan will be hosting a live Cofunds Budget review show on our website with Technical Connection’s Tony Wickenden and John Woolley.

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  1. So those earning between 42-50k still get their child benefit but more of their earnings will be in 40% tax bracket. Personal allowances raised from next April but 50p tax rate for the big earners dropped immediately. I don’t see why any parent earning under 50k should be grateful for still receiving something that they have always been entitled to (irrespective of earnings). This is money that is usually put straight back into the economy and supports local business. Ie nappies, food, clothes, day trips etc. if I was a single earner on £60k (so mire than likely a hard worker) trying to support my family, pay my mortgage, plan for the future and enjoy today I would be absolutely fuming.
    http://www.babyknowledge.co.uk

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