Tax changes in 2012-13
Tax changes 2012-13
Tax changes 2012-13
Changes to the taxation of non-domiciled persons
From April 2012, non-doms who have been UK resident for at least 12 of the previous 14 tax years and who elect to be taxed on the remittance basis will be charged an increased rate of £50,000 per annum. The current £30,000 per annum remittance basis charge will continue to apply to non-doms who have enjoyed UK residence for at least seven of the previous nine tax years, but fewer than 12 of the previous 14.
Reduced rate of IHT for charitable legacies
The new, lower rate of inheritance tax (IHT) at 36% will apply for deaths on or after 6 April 2012, where the individual leaves a minimum of 10% of the taxable estate (i.e. the value of the estate after deducting reliefs and exemptions) to charity on their death.
Seed Enterprise Investment Scheme
A new tax advantaged venture capital scheme called the Seed Enterprise Investment Scheme (SEIS) was launched, aimed at encouraging investment in small, seed-stage companies. Qualifying investments made on or after 6 April 2012 (and before 6 April 2017) will attract income tax relief at 50% on the lower of £100,000 and the amount of qualifying investments made during the tax year, regardless of the individual's marginal rate of income tax.
New penalties for late filing of tax returns
The deadline for electronic filing of the 2011 self assessment returns is 31 January 2012. Late filing will trigger the new penalty regime. NB even those who pay any outstanding liabilities for 2010-11 before the 31 January 2012 will incur late filing penalties.
Annual investment allowance
Expenditure on most qualifying equipment up to 5 April 2012 will be covered up to the annual expenditure limit of £100,000. From 6 April 2012 this annual limit will reduce to £25,000. (See earlier news item for more detail).
Submitted by MSB Accounting on Friday 27th January 2012