October 07 Pre-Budget Report
Some might feel sorry for
our “Darling” chancellor.
He has inherited:
£50 Billion of Public Sector Debt;
an overpaid and under-performing Public Sector;
a faltering economy; and a banking crisis (temporary,
we hope).
A poisoned chalice if ever one was possible!
The following summary will give you a detailed overview of the proposed changes and comments on the action required if any of the changes will affect you. Please read them carefully and contact us if you require further specific advice.
The main proposals contained some surprise changes which included:
- The abolition of taper relief and indexation allowance for capital gains tax (CGT)
- The introduction of a flat rate of CGT for individuals/trustees of 18%
- A change in inheritance tax relief for married couples and civil partners
- Non domiciles to pay an annual charge of £30,000 for their tax advantaged status
- Proposals to stop the tax savings available to businesses by income shifting between family members
- An increase in the car fuel scale charge
Our Summary covers: