Attheotherendoftheincomescale,thetoprateofincometaxforthoseearningover£150,000ayearwillbecutfrom50pto45pinthepoundfromApril2013。

GeorgeOsbornejustifiedthemovebyarguingthatthe50prateencouragedtoomuchtaxavoidance。



TherewasanodtotheLibDemideaofa‘mansiontax’intheformofabrandnewstampdutylandtaxrate。

Propertiesworthover£2mwillnowincurstampdutyof7%。

Topreventwealthyindividualsavoidingstampduty,housesworthmorethan£2mthatareboughtthroughcompanieswillnowfaceastampdutylandtaxrateof15%。

CapitalgainstaxwillnowalsobechargeableonprofitsmadebyoverseasfirmsthatownandthensellhousesinBritain。

Ontopofthattherewillbeanoverallcapontheamountoftaxrelief(fromvarioussources,includingenterpriseinvestmentschemes)thatanindividualcanclaiminanyoneyear。

Themaximumannualreliefisthelargestof25%ofyourincome,or£50,000。



Planstocutoffchildbenefittohouse-holdswhereaparentearnsover£42,475havebeenscrapped。

Nowthecut-offpointwillbe£50,000,atwhichpointthebenefitwillstarttobetaperedofftopreventanysuddendropinhouseholdincome。

Onlyhouseholdswithanindividualearning£60,000andabovewillloseitaltogether。



Soyouknowwhereallyourmoneyisgoing,taxpayerswillstartreceivinga‘personaltaxstatement’eachyearthatdemonstrateshowmuchtaxandnationalinsurancethey’vepaidandwhatthismoneyhasbeenspenton。



Taxreliefonpensioncontributionsremaineduntouched,despitebeingseenasatargetbymany。

Butthereweresomesignificantchangestostatepensions。

Thestatepensionageiscurrentlyscheduledtoriseto67,forbothsexes,by2026。

Butinsummer,we’llheardetailsofan‘automaticreview’process,whichseemslikelytopegthestatepensionagetolifeexpectancy。

Age-relatedincometaxallowancesarebeingscrappedfornewpensionersfromApril2013。

Allowancesforexistingpensionerswillbefrozen。



Alcoholdutywentupby2%aboveinflationasplanned,whiletaxontobaccoproductswentupby5%aboveinflation–that’s37ponapacketofcigarettes。

Lastly,therewerenochangestoplanneddutyincreasesonfuel。

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