2012 United Kingdom budget
| Budget 2012 Bill | |
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| Presented | Wednesday 21 March 2012 |
| Parliament | 55th |
| Party | Coalition government |
| Chancellor | George Osborne |
| Total revenue | £592 billion (38.5% of 2011 GDP) |
| Total expenditures | £682 billion (45% of 2011 GDP) |
| Deficit | £90 billion (6% of 2011 GDP) |
| Website | Budget 2012 documents |
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The 2012 United Kingdom budget was delivered by George Osborne, the Chancellor of the Exchequer, to the House of Commons on Wednesday 21 March 2012.
It was the third budget of the Conservative-Liberal Democrat coalition government that was formed in 2010, and also the third to be delivered by Osborne.
Its key points included a rise in the personal tax allowance, a cut in the top rate of income tax and in the rate of corporation tax, and a new level of stamp duty on high-value properties.
Osborne announced that from April 2013, the annual personal income tax allowance will be raised from £8,105 to £9,205. It was estimated this would make 24 million people better-off by up to £220 per year. The 40% tax band will become applicable for incomes over £41,450 per year (a reduction of £1,025 from £42,475) and the top tax band for high-earners will be reduced to 45% from 50%; Osborne said the 50% rate introduced by the previous Labour government was "damaging" the country's competitiveness and had raised only one-third of the £3 billion it had intended to raise. From 2014, income tax-payers will receive a 'personal tax statement' outlining how their income tax and National Insurance contributions were spent.
Also from April 2013, people over 65 years of age will not get an enhanced personal income tax allowance, known as the age allowance. However, those who have an age allowance under the previous tax rules will not lose their age allowance.HM Revenue and Customs estimated that 4.4 million pensioners would become worse-off in real terms by up to £83 in 2013–14.
The Chancellor introduced, with immediate effect, a new rate of stamp duty of 7% on properties purchased for over £2 million. The rate increases to 15% if any such property is bought through a company. This was a common tax avoidance strategy where individuals could set up a limited liability company which bought the property, thereby avoiding paying stamp duty, and then immediately sold it back to the individual. Osborne said this abuse "roused the anger of many of our citizens".
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