Budget 2013 Predictions

With so many of the changes due next month already known, it is hard to imagine what next week’s Budget Box will contain. We’re certain it won’t be empty though and the Chancellor has kept a few surprises up his sleeve.

However, below are the snippets of what we are expecting:

• Increase in the personal relief to £10,000
• Confirmation of a convergence of the standard rate and small company rate of corporation tax at 20%
• The temporary increase in Annual Investment Allowance to £250k being extended indefinitely to encourage more investment
• Further upfront measures to encourage investment in owner managed business to bridge the bank funding gap. Enterprise Investment Scheme is too complex and restrictive.
• More encouragement for savers
• Equalisation on the application of the Child Benefit Higher Charge to address the anomaly whereby husband and wife each earning £49,999 do not suffer the restriction but a couple earning £50,001 and £49,999 respectively is caught
• Closure of outdated reliefs and anomalies in the income tax legislation even possibly on the 5% withdrawal on Investment bonds

As usual we will listen to what the Chancellor says next week and analyse the voluminous supporting documents. RSM Tenon