The personal allowance will rise to £10,000, and the higher rate threshold will rise by 1 per cent to £41,865.
The final period of ownership of a property which qualifies for private residence relief is to be reduced from 36 months to 18 months.
From April 2014, where the duties and remuneration of a single employment are divided artificially between a UK contract and an overseas contract, and tax is not payable overseas in line with UK rates, the whole income will be taxed in the UK.
The rules will be strengthened to ensure that avoidance schemes using offshore employers to avoid paying income tax and NICs on UK employment are caught, while leaving genuine overseas employment unaffected.
The Government is expected to introduce legislation in the budget to prevent the use of onshore employment intermediaries avoiding National Insurance contributions and income tax by presenting employment relationship falsely as self employment.
SIP, SAYE and CSOP schemes will now be subject to self certification to HMRC by businesses, rather than requiring HMRC approval before operation. Several of the plan rules have been clarified or simplified to meet the context of self certification.
Following consultation, the treatment of a salaried member of an LLP will be changed from that of a partner to that of an employee for income and corporation tax purposes when certain conditions are met. Changes will also be made to the rules surrounding profit and loss allocations using mixed membership partnerships to avoid tax.
As previously announced the rate of corporation tax for profits other than ring fence profits will fall to 21% in April 2014 before being unified with the small profits rate at 20% in April 2015.
As a result of the unification of corporation tax rates the rules for identifying associated companies are no longer needed and will be repealed.
Measures to modernise the treatment of loan relationships will be introduced, split across two Finance Bills. The first changes, which will be in this year’s Finance Bill, are in relation to partnerships and bond funds.
The rules governing the availability of trading losses where a company changes ownership are to be amended and supplemented to ease the current restrictions.
From April, most employers will be able to claim Employment Allowance to reduce their employers Class I National Insurance contributions by up to £2,000 each year.
From January 2015, the place of supply of broadcasting, telecommunications and e-services provided by EU suppliers to non-registered customers will change from where the supplier is to where the customer is.
A consultation (“Tackling marketed tax avoidance”) is currently in progress on proposals for taxpayers to make accelerated payment of tax that is in dispute or subject to enquiry.