The bite-size budget - Economy - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

The bite-size budget

The bite-size budget

Category: Economy

Updated: 01/05/2014
First Published: 25/03/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

George Osborne's second budget as Chancellor has been widely touted as the budget for growth and business – it was also a budget of surprises. In order that you don't do a Ken Clarke and fall asleep, we've summarised what we think are the key nuggets from Wednesday's budget:

The Budget 2011: the bite-size version
Tax
  • To take effect in the 2012-13 tax year, the personal allowance for under 65s will go up by £630 to £8,105.
  • The Government is going to consult on merging the payment of Income Tax and National Insurance in order to reduce the administrative burden on employers.
  • Don't worry if you're a pensioner – it won't mean that you'll now be paying National Insurance.
  • Your family will get 10% off their Inheritance Tax bill if you leave 10% of your estate to charity.
Housing and Mortgages
  • A new shared equity scheme has been launched to help 10,000 first time buyers get onto the housing ladder when they purchase a new build property.
  • The Support for Mortgage Interest scheme is now continuing for another year.
  • There's going to be a Council Tax freeze for this year.
On the Roads and in the Skies
  • 1p a litre fuel duty reduction, which has already taken effect. (Don't forget that tax on fuel rose in January with the 2.5p hike in VAT).
  • £100m to tackle the nation's potholes.
  • Passengers on private jets will pay passenger duty (about time too: have you noticed that every Bond villain has a private jet – now we know why: it's tax efficient!).
Pensions
  • The Government is consulting on introducing a contribution-based State Pension that will be worth circa £140 per week (if you're currently a pensioner this increase – or decrease – won't apply to you).
  • Battered public sector workers will have to stump up a further 3% for their pensions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
 
Close