Budget Q&A: What does it mean for me? - Live coverage - The Independent

Budget Q&A: What does it mean for me?

Toby Ryland from Blick Rothenberg Chartered Accountants answers your questions on the Chancellor's announcements, running till 1.30pm. To ask a question, just click the 'Make a comment' box below.

  • Q. My home is worth considerably more than £2 million but was given to me as a gift through my parents' company. They will die soon and the company dissolved immeadiatly. Is it worth them closing the company now and using the money to buy my property outright. I don't want my inheritance wasted on stamp duty.
    by Horatio Stroganoff 1:07 PM

    A. This will involve careful calculation and will depend on your specific circumstances. It may save capital gains tax to take the property out of the company but that is not of great benefit if it results in a 40% inheritance tax charge. If inheritance tax is not payable, then a 7% stamp duty charge now may be better than a capital gains tax charge (as high as 28%) and an annual charge (essentially a mansion tax) in the future.
    3/22/2012 1:11:46 PM
  • Any good news for first-time property buyers? If there was, I missed it. If there wasn't, I'm stuck.
    3/22/2012 1:16:16 PM
  • Q. Any good news for first-time property buyers? If there was, I missed it. If there wasn't, I'm stuck.
    by falmouth 1:16 PM

    A. Nothing notable unfortunately. There are no stamp duty reductions for first time buyers but there has been the launch of the "New Buy" scheme on 12 March this year which aims to help first time buyers with only a 5% deposit obtain a mortgage to purchase a newly built home.
    3/22/2012 1:17:22 PM
  • Didn't see anything about ISAs in the Budget. Has the allowance been frozen?
    3/22/2012 1:20:21 PM
  • Q. Didn't see anything about ISAs in the Budget. Has the allowance been frozen?
    by John P, Croydon edited by John Hall 1:20 PM

    A. The ISA annual allowance has been increased to £11,280 from £10,680 with effect from 6 April 2012. Only £5,640 will be able to be saved in cash, the rest must be in stocks and shares.
    3/22/2012 1:21:05 PM
  • Q. Currently, for persons over 65 they pay 30% tax above the allowance. Will that still be the case or will it be the same as everyone younger, ie 20% rising 40% depending on income
    by Frances 1:22 PM

    A. I suspect you are looking at effective tax rates (ie the proportion of income you actually pay in tax) rather than the actual rate. There are only (currently) three rates of income tax for earnings - 20%, 40% and 50%. Everybody pays at these rates but pensioners have additional Age Related Allowances meaning that they do not start to pay income tax at the same level of earnings as younger people.
    3/22/2012 1:24:07 PM
  • Will universities offer concession fees for people living on a low wage?
    3/22/2012 1:29:51 PM
  • Q. Will universities offer concession fees for people living on a low wage?
    by Beverley Anne Slade 1:29 PM

    A. There is no requirement for universities to do so. Some may offer assistance such as bursaries but these will be determined by the individual university.
    3/22/2012 1:31:24 PM
  • Q. Ten UK cities are getting ultra-fast broadband, he said. Does that mean I'll get incentives to change my set-up. Or is this just for companies?
    by Jeff from IT 1:32 PM

    A. The commitment is to make an investment in infrastructure so that the ten UK cities will all have superfast broadband capability, both to homes and to businesses. However, the Chancellor did not say that the users of the broadband would not have to pay to access it!
    3/22/2012 1:35:19 PM
  • And the final question Toby will answer is....
    3/22/2012 1:37:59 PM
  • Q. What's this about extra tax on caravans? I live in mine for 7 months of the year. What does it mean for me?
    by jh skegness edited by John Hall 1:38 PM

    A. This is a VAT change so will only affect you if you buy a new caravan. If the caravan is not designed or constructed with a view to being lived in all year round, then it will be subject to VAT at 20% when it is purchased.
    3/22/2012 1:38:32 PM
  • Well that concludes our Budget Q&A.

    Many thanks to Toby Ryland, a tax partner with Blick Rothenberg chartered accountants, and to everyone who submitted questions.
    3/22/2012 1:43:54 PM
Powered by ScribbleLive Content Marketing Software Platform
Latest stories from i100
Career Services
A
Independent Travel
Pompeii, Capri & the Bay of Naples
Seven Cities of Italy
Burgundy, the River Rhone & Provence
Prague, Budapest and Vienna
Lake Garda
Minoan Crete and Santorini
Prices correct as of 15 May 2015