Welcome to our 2008 Budget Summary
Alistair Darling presented his first Budget on
Wednesday 12 March 2008.
After the Northern Rock saga and the changes
of mind on the ‘simplification’ of capital gains tax, will it be
his last?
On the economy, the Chancellor stated that there will be no
recession although he conceded that growth up to 2010 will be less than
previously forecast. Borrowing will go up as a result.
Our summary
focuses on the direct and indirect tax measures which are buried in the
Treasury and HMRC press releases.
We concentrate on the issues likely
to affect you, your family and your business. To help you decipher what was
said we have included our own comments.
If you have any questions
please do not hesitate to contact us for advice.
Main Budget proposals
- Plans to stop the tax savings available to
businesses by ‘income shifting’ are delayed for one year
- Further details on the changes to the capital
allowances regime including the taxation of company cars
- Improvements to the Enterprise Management Incentive
scheme
- Annual charge on non-domiciles still to be
introduced but some relaxations made to the original proposals
- Income tax relief extended for the Enterprise
Investment Scheme
Previous announcements
Many of the changes detailed in this summary have been
the subject of earlier announcements. Here is a reminder of some of the more
important ones:
- Reduction in the basic rate of income tax and
significant increases in national insurance
- Increase in the investment limits for ISAs
- The abolition of taper relief and indexation
allowance for capital gains tax (CGT)
- The introduction of a flat rate of CGT for
individuals of 18% and a new Entrepreneurs’ Relief
- A significant change in inheritance tax relief for
married couples and civil partners
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