It’s budget 2011 day (23 March 2011) and all things fiscal!

It’s budget 2011 day (23 March 2011) and all things fiscal will be on the agenda for many of us today.

For most, whether they be business owners or individuals, smoker or drinker, driver, low earners or higher earners, today’s announcements are likely to catch up with us all in some format in the near future. There is always much speculation of what may be changed, put in place, deferred or reduced, and sometimes this speculation is correct, but often not. It has to be noted that some of this speculation is driven by those that may have a motive for the success of their campaign to stop or reduce a tax, as an example.

Some of the headline taxes that many will focus on today may be:

Personal Taxes

• Income Tax


• Capital Gains Tax (Currently £10,100 in 2010/2011)


• Inheritance Tax (Current nil rate income tax band at £325,000/ £650,000 joint for married couples)

Business Taxes

• Corporation Tax (Details of this and the new tax year can be found at the HMRC website here: http://www.hmrc.gov.uk/rates/corp.htm )


• National Insurance Rates

Indirect Tax

• Value Added Tax (VAT) currently 20% (current business threshold £70,000)


• Fuel Tax


• Tobacco & Alcohol tax

One other significant way that the pound in your pocket can be effected is with the allowances that are sometimes allowed before you pay tax, such as the personal allowance (currently £6,475 (Below age 65) 2010/2011) which we know is increasing in the new tax year (starting 06 April 2011) to £7,475 income in the year. This £7,475 threshold has a limit of £100,000 before it starts to reduce. More details on the Income Tax allowances for the new tax year 2011/2012 (in comparison to previous years) can be found at the HMRC website here: http://http://www.hmrc.gov.uk/rates/it.htm

Other tax efficient savings plans, such as ISA’s (current allowance 2010/2011 is £10,200, however this is increasing to £10,680 in 2011/2012) and pension contributions may also be affected, although much work has already been undertaken on the current pension regime in the new tax year, as already noted on these Churchouse Financial Planning web pages and also indicated on the HMRC website here: http://www.hmrc.gov.uk/rates/pensionsschemes.htm

Today will be an interesting day, with many speculating that it will be a pro business day, however, the UK purse does not have much to give away. These comments are made prior to the budget announcement and may be subject to change. We will plan to keep our website updated with any changes of significance over the coming months that may affect your financial planning.

There is usually a lot involved in any financial planning and we can go into detail with you when you enquire. We are all different and the needs for saving, retirement, investment or pension planning, as examples, will vary, dependent on your individual requirements. Therefore, this article should not be seen or used as individual advice.

This article contains links to websites of which the content has not been approved by Churchouse Financial Planning.

Seek Independent Financial Advice (IFA) for your circumstances.

Keith Churchouse, Chartered Financial Planner
Director of Churchouse Financial Planning Limited

ISO22222 Certified Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate taxation advice.