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Finance Act 2011 Norman Allison Mercia Group Ltd
Statistics <ul><li>93 sections </li></ul><ul><li>26 Schedules </li></ul><ul><li>398 pages </li></ul><ul><li>Weighs 1kilo <...
Personal Tax
Personal allowance 2011/12 <ul><li>Increased to £7,475 </li></ul><ul><ul><li>Lost when ANI is £114,950 </li></ul></ul><ul>...
Winners & losers <ul><li>880,000 at bottom end benefit </li></ul><ul><li>23m at BR = +£170 </li></ul><ul><li>1.75m at HR =...
Example <ul><li>Gross income £120,000 </li></ul><ul><li>Gift Aid payments £6,000 net </li></ul><ul><li>Pension payments £8...
Example Gross  Income £120,000 Net Income £120,000 Net Income £120,000 £7,500 Grossed up Gift Aid £10,000 Grossed up pensi...
Impact for age related <ul><li>Assume ANI over £100,000 </li></ul><ul><li>PA drops to level it would be if under 65 </li><...
2012 /13 <ul><li>Personal allowance up to £8,105 </li></ul><ul><li>Basic rate band reduced from £35,000 to £34,370 </li></...
The future <ul><li>£10k is long term goal </li></ul><ul><li>No other detail </li></ul><ul><li>No mention of transferabilit...
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Finance Act 2011 Basic Version

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Finance Act 2011 Basic Version

  1. 1. Finance Act 2011 Norman Allison Mercia Group Ltd
  2. 2. Statistics <ul><li>93 sections </li></ul><ul><li>26 Schedules </li></ul><ul><li>398 pages </li></ul><ul><li>Weighs 1kilo </li></ul>
  3. 3. Personal Tax
  4. 4. Personal allowance 2011/12 <ul><li>Increased to £7,475 </li></ul><ul><ul><li>Lost when ANI is £114,950 </li></ul></ul><ul><li>Basic rate band to be reduced </li></ul><ul><ul><li>£35,000 </li></ul></ul><ul><li>Higher rate threshold reduced – 400,000 more HR taxpayers </li></ul><ul><li>Additional rate </li></ul><ul><ul><li>Unchanged at 50% </li></ul></ul><ul><ul><li>Starts at £150,000 </li></ul></ul>
  5. 5. Winners & losers <ul><li>880,000 at bottom end benefit </li></ul><ul><li>23m at BR = +£170 </li></ul><ul><li>1.75m at HR = -£220 </li></ul><ul><li>£10k PA </li></ul>
  6. 6. Example <ul><li>Gross income £120,000 </li></ul><ul><li>Gift Aid payments £6,000 net </li></ul><ul><li>Pension payments £8,000 net </li></ul>
  7. 7. Example Gross Income £120,000 Net Income £120,000 Net Income £120,000 £7,500 Grossed up Gift Aid £10,000 Grossed up pension contributions Adjusted net income £102,500 NAI 102,500 Less (100,000) Excess 2,500 PA lost 1,250
  8. 8. Impact for age related <ul><li>Assume ANI over £100,000 </li></ul><ul><li>PA drops to level it would be if under 65 </li></ul><ul><li>MCA for over 75yrs will be minimum £2,800 </li></ul>
  9. 9. 2012 /13 <ul><li>Personal allowance up to £8,105 </li></ul><ul><li>Basic rate band reduced from £35,000 to £34,370 </li></ul><ul><li>Higher rate threshold remains unchanged at £42,475 </li></ul><ul><li>Allowances uprated by CPI except Ers NIC threshold, age related allowance etc which will be RPI </li></ul>
  10. 10. The future <ul><li>£10k is long term goal </li></ul><ul><li>No other detail </li></ul><ul><li>No mention of transferability </li></ul>

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