CITY VIEWS: IS IT FAIR THAT BANKS SHOULD BE HIT AGAIN SO SOON AFTER THE MERLIN AGREEMENT? March 23, 2011 ROBERT BELL | OCEANIC & INDUSTRIAL “What does fairness have to do with the government’s treatment of the banks? We live in a democratic dictatorship society. People will always look for loopholes for ways to benefit themselves.” FENTON FERGUSON | AON BENFIELD “If the government continues to treat the banks poorly, we should be worried [...]
Deficit cuts imperilled by sluggish growth for 2011 March 23, 2011 CHANCELLOR George Osborne’s deficit reduction plan hangs in the balance, according to official government forecasts released yesterday. The Office for Budget Responsibility (OBR) – the new independent fiscal watchdog – revised up its forecasts for public sector borrowing by “around £10bn a year in the medium term.” Meanwhile the growth forecast for this year dropped [...]
Tax-free threshold on ISAs hit by change in inflation measurement from April 2012 March 23, 2011 ALLOWANCES for several direct taxes will rise at a slower rate than before, after changes made by chancellor George Osborne yesterday. The measure of inflation used to calculate increases in direct tax allowances will change from April next year, Osborne announced. Thresholds for capital gains tax (CGT), national insurance (NI) and ISAs, will now be [...]
Jobs to decline this year despite economic growth March 23, 2011 EMPLOYMENT will fall by 100,000 in 2011-12, despite the recovery continuing with 1.8 per cent economic growth, official forecasts claimed yesterday. Along with downwardly revised growth expectations for this year, the government’s fiscal watchdog painted a gloomier picture for the jobs market. The number of people claiming unemployment benefit will rise to 1.55m in 2011-12, [...]
Entrepreneurs among Budget big winners March 23, 2011 ENTREPRENEURS were among the biggest winners from the Budget, with a raft of measures aimed at encouraging people to invest in their own businesses. The changes, most of which will come into play on 6 April, will include: •A hike in the lifetime limit for entrepreneurs from £5m to £10m. •Relaxation of the Enterprise Investment [...]
Global firms welcome relief on foreign earnings March 23, 2011 THE government has announced measures intended to lure multinationals back to the UK and has promised a review on the taxation of profits made outside the country. The Chancellor said during his Budget announcement yesterday: “I want Britain to be the place international businesses go to, not the place they leave.” He claimed that the [...]
A muted market response March 23, 2011 THE Treasury has made a decent start to its austerity measures. The Budget appears well-balanced despite the fact there were hints of give-aways as the government looked to shore up confidence. Marginal improvements in income tax and the changes to petrol duty may help, although we did see a wobble in shorter term growth forecasts. [...]
Osborne kills off 43 types of tax relief from system March 23, 2011 COMPLICATED and ineffective tax reliefs were struck off the government’s books yesterday as the chancellor committed to simplifying the tax regime. George Osborne removed 43 types of tax relief from the system, such as the Millennium Gift Aid, which he pointed out “we won’t need for another 989 years”. The moves, which come from recommendations [...]
New pension rules to hit rich March 23, 2011 THE Budget changes will come into play on the same day as the changes to pension rules revealed earlier this month. High earners will lose out thanks to new rules limiting annual contributions that qualify for tax relief to £50,000, down from £255,000. The higher tax bills can be paid directly out of individuals’ pension [...]
Charities get taxation boost March 23, 2011 CHANGES to inheritance tax rules in yesterday’s Budget means that those leaving 10 per cent or more of their estate to charity will now also get a 10 per cent tax relief on their donations. Charities welcomed the move, but accountancy firm KPMG called the 10 per cent target for donations “ambitious”, and said the [...]
