1. Phil Cook FCA CTA Tax Partner Clement Keys

2. Personal Taxes  PA’s up £630 in 2012/13 for those under 65  Further increase of £1,100 in 2013/14  Benefit withdrawn for Higher rate by reducing 40% threshold by same amount (now £34,370 from £35,000)  Age related Allowances frozen from 2012/13  Abolished for those reaching 65 after 6.4.13

3. Personal Taxes  Higher rate remains at 40% up to £150,000  Additional Rate reduced to 45% from 6 April 2013 for income >£150,000  Dividend Rate for Higher Rate 32.5% (net rate = 25%)  Dividend Rate – 37.5% (net rate = 30.55%) – currently 42.5% (net 36.1%)  PA’s £1:£2 reduction for income > £100,000

4. Personal Taxes  From 7.1.13 Child Benefit Tax Charge to recoup benefit for income >£50,000.  All couples living together  Applies to highest income earner  HMRC will collect tax charge through SA or PAYE as necessary  Election possible to waive benefit  HMRC will contact in Autumn 2012

5. Personal Taxes  EIS simplification; investment limit £1million  SEIS - £100,000 relief @ 50% for small coy’s  Ceiling on unlimited IT reliefs in FB 2013  Statutory Residence test – deferred to 6.4.13  ISA Limit to £11,280  Qualifying Life policy premium limit of £3,600pa

6. Capital Taxes  CGT Annual Exemption & IHT Nil Rate Band unchanged  Non-Dom spouses limit to be reviewed  D T Periodic Charges to simplified from FB 2013  Acquired Excluded Property trusts to be charged

7. SDLT  Residential property >£2m subject to 7% SDLT  15% charge on similar properties held by ‘Non-natural’ persons  Annual charge consultation on non-naturals  Anti-avoidance changes on property & option schemes

8. Capital Allowances  AIA down to £25,000 from £100,000  WDA down from 20% to 18% and from 10% to 8% for the Special rate pool  Fixtures subject to S198 type election on sale  EZ allowances will be 100% on P&M  Solar Panels producing FiT payments will be Special Pool only from April 2012

9. Corporate Tax  Full rate reduced to 24% from 1.4.12  Further reduction to 23% from 1.4.13  Final reduction to 22% from 1.4.14  Marginal rate becomes 25% from 1.4.12  Small company rate unchanged

10. Other Issues  Cash Basis for small businesses ◦ Consultation on unincorporated businesses with turnover <£77,000 from April 2013  Anti-avoidance law ◦ A general anti-avoidance rule recommended by the Aaronson Report in FB 2013  Consultation on dis-incorporation

11. HMRC v PA Holdings Ltd  Dividends v Bonus  Artificial arrangements ◦ Dividend waivers ◦ Alphabet shares ◦ Arctic Systems