Budget 2012

As anticipated, a mixed bag of measures from George Osborne was announced yesterday.

What do we like?

• Confirmation of the introduction of SEIS (Seed EIS) – already prompting large interest amongst our clients
• EIS investment limit raised to £1m per person
• Tax breaks for the TV, Animation and Games sectors from April 2013 – detailed legislation expected later this year
• The “Patent Box” for intellectual property, taxing profits at just 10% from April 2013
• The increase in R & D tax credits
• The reduction in corporation tax to 24%
• The reduction in higher rate income tax to 45% from April 2013
• 37p on a packet of cigarettes

And what don’t we like?

• The increase in SDLT for “mansions”
• EIS limit now proposed to be £5m rather than the £10m announced last year – arguments with the EU clearly continuing
• CGT on UK property gains by “non natural persons”

To read our full notes on the Budget please click here