Wednesday, 21 March 2012

Financial Pages in Spain reviews the UK Budget 2012

UK Budget 2012

From a Spanish perspective

Update the morning after
In the details of the budget, it has become obvious that UK pensioners will miss out on Annual uprating of their Age-Related Tax Allowances. The group most badly hit are those with incomes of between £10,000 and £24,000. I'm CERTAIN this includes many, probably THOUSANDS of expats.

It is clearly a time to take stock and review YOUR tax position if you have UK taxed income but live in Spain. Please  email me to get access to advice. Remember my commitment

Professional Advice is crucial but I guarantee that there will be NO UPFRONT FEES

There are many expats, especially pensioners and expat workers, in Spain who have a close vested interest in the UK Budget. There will be much more analysis over the coming days but I thought an outline summary would help.

If you would like a professional analysis from UK economists please email me and I’ll give you the link.

  • Personal Allowances for income tax are increasing in line with the Lib Dem manifesto and the Coalition agreement in 2012/13 the allowance will be £8,105 but a steep rise in 2013/14 to £ 9,205. This is the amount anyone (UK taxpayer) can earn before paying any tax and increased taxed income for all taxpayers

  • The highest rate of income tax will fall from 50% to 45% from 2013 on incomes above £150,000 per year

  • The Chancellor announced a ‘review’ into the impact of taxes on pensioners. Hopefully the system will be easier in the future but no changes are being made immediately.

  • Corporation Tax on company profits to be cut by 2% to 24% and will be down to 22% from 2014. Though unlikely to affect Spanish residents directly, it could encourage UK companies to expand….into Spain?

  • Huge changes are being made to Stamp Duty Land Tax (SDLT) on properties over £2 million and loopholes closed to avoid purchase through overseas and offshore companies

  • Duty on tobacco increases by 5% immediately but I doubt if expat smokers buy cigarettes in the UK!

There are many other facets to the Budget and much of it is economic analysis but I wanted to publish the key details quickly. If any other factors come to light, later, I will produce an update. It could be worth putting this in your favourites and checking.

If you have any specific queries, please email me.

David Goodall
Financial Pages in Spain