The Budget 2008
Wednesday 12 March 2008
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 and have commented on the important areas where some action may be required.
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:
- Removal of the starting rate of income tax in most cases, a 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.
The Budget proposals may be subject to amendment in the Finance Act. You should contact us before taking any action as a result of the contents of this summary.
PERSONAL TAX
CORPORATE AND BUSINESS TAX
EMPLOYMENT ISSUES
CAPITAL TAXES
VAT
OTHER MATTERS
This summary is published for the information of clients. It provides only an overview of the main proposals announced by the Chancellor of the Exchequer in his Budget Statement, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.
Contact THR for further advice
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