Chancellor George Osborne will deliver his 2012 Budget statement to the House of Commons today, amid speculation that the statement will include significant announcements on personal tax allowances and the 50p top rate of income tax.
The personal income tax allowance is due to rise from £7,475 to £8,105 next month, but some experts believe that a significant further increase could be announced, bringing the threshold at which individuals start paying income tax to more than £9,000.
Meanwhile, some economists are predicting that the Chancellor will announce a reduction in the top tax rate from 50p to 45p, to take effect from April 2013.
The Chancellor has already confirmed that the Budget will include ‘aggressive’ new measures to crack down on stamp duty avoidance, and there is speculation that a new higher rate of stamp duty could be applied to properties worth in excess of £2m.
Mr Osborne is also expected to clarify the situation regarding the Government’s planned changes to child benefit, following concerns that some families will be unfairly penalised as a result of the withdrawal of the benefit for higher rate taxpayers.
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