The Chancellor's third Budget speech emphasised the
need to raise revenue by closing loopholes and further cracking
down on tax avoidance.
In the weeks leading up to the 2012 Budget the rumour mill was
working overtime. There was much speculation about what would be
announced, particularly concerning the 50% higher rate of income
tax, further restrictions on pensions tax relief, a rise in the
personal allowance and a new mansion tax. This was no doubt in part
a by-product of having a Coalition Government in power, with the
two parties setting out their aspirations in public.
Tax rates and allowances
The Coalition Government has established what it calls the
'Tax Policy Framework'. This includes a strict timetable
following the announcement of changes in a spring Budget.
Consultation should take place in the summer, with draft
legislation published in the autumn and taking effect the following
6 April.
