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Budget Key Points - March 2011

The following summarises today's budget:

Personal:

Personal tax allowance to rise by £630 to £8,105 in April 2012

Direct tax to be indexed by Consumer Prices Index (CPI), which excludes mortgage costs, from April 2012

Consultation on merging National Insurance and Income Tax. Not proposing to increase taxes for pensioners

50p tax rate should be a temporary measure

Income Tax relief on Enterprise Investment Scheme to increase from 20% to 30% in April 2011

Charge on non-domiciled taxpayers to increase from £30,000 for those here for seven years to £50,000 for those in the country for 12 years

Businesses:

Corporation Tax reduced by 2% from April 2011 - rather than 1% as previously announced - and to fall by 1% in each of the next three years to reach 23%

Small business rate relief holiday extended by one year to October 2012, at a cost of £370m

Entrepreneurs Relief scheme to be doubled to £10m from April 6

Small companies' research and development tax credit to rise to 200% in April and 225% in 2012

A new 5.75% rate on overseas financing income coming into the UK

Sins:

No new increase on alcohol or tobacco

Tobacco duty rates to increase by 2% above inflation, as previously announced. Tobacco duty regime reformed

Fuel & Vehicles:

Cutting fuel duty by 1p per litre this year. To take effect in petrol stations from 6pm tonight

Inflation rise in fuel duty planned for next week to be delayed until 2012

Fuel duty escalator that adds 1p to fuel duty on top of inflation each year to be cancelled for the rest of this Parliament

Vehicle Excise Duty to increase in line with inflation, and frozen for heavy goods vehicles

Homeowners:

£250m fund for first-time buyers under shared-equity scheme to help 10,000 families