21 March 2012
Press ReleasesThames Valley and South Coast accountants James Cowper Kreston comment on George Osborne’s 2012 Budget.
General comment – Chris Lee, Partner, James Cowper Kreston
“With apologies to Wallace and Gromit. Whose trousers was George Osborne wearing today when he gave his Budget – the rich, the squeezed middle or the working poor? It is likely that everyone will claim he was wearing everybody’s but their own. There are few winners and few losers in this Budget.”
Comment on the reduction of the top rate of taxation from 50 to 45 per cent – Sharon Bedford, Partner, James Cowper Kreston
“The reduction in the top rate of income tax from 50 per cent to 45 per cent will be welcomed. However, it would have made enormous sense to introduce this straightaway, as anyone who can defer income until 2013 will do so thus reducing money into the government’s coffers this year.”
Tax avoidance measures – Ian Miles, Partner, James Cowper Kreston
“The boundary between tax evasion and tax avoidance has traditionally been the prison wall. Whilst we welcome the Government’s intention to clamp down on high end tax avoidance, we are worried about the blurring of these definitions, with a possible attack on legitimate tax planning. It would be helpful to have guidance from Government on the spirit of the legislation, but that is unlikely.
VAT on renovation of listed buildings – Ruth Corkin, Head of VAT Services, James Cowper Kreston
“Bad news for home owners living in and looking to renovate a listed building. George Osborne has introduced VAT on renovations at 20 per cent, effective from tomorrow. This is disappointing news as older listed buildings are more often than not more costly to renovate and repair, and now become even more so.
“Those currently renovating their listed home will have until October to complete works, or face an increased bill.”
Corporate Tax rate – Chris Lee, Partner, James Cowper Kreston
“The reduction in the Corporate Tax rate is good news. There is however nothing for businesses with profits of £300,000 a year or less. It would have been good to see a corresponding one per cent reduction for these businesses.
“There is also no good news for employers’ wage bills – a cut in employee National Insurance rates would have been particularly welcome and helpful.”
Chris Lee, Partner, James Cowper Kreston LLP, Tel +44 (0)2380 221222 or email clee@jamescowper.co.uk
