Alistair Darling presented his first budget on Wednesday 12 March 2008. He believes that there will not be a recession although he thinks that growth up to 2010 will be lower than previously forecast.
Main Budget Proposals
Plans to stop the tax savings available to businesses by “Income Shifting” are delayed for one year.
Further details on changes to capital allowances including company cars and their taxation.
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 extended for the enterprise investment scheme.
Details of Previous Announcements
Many of the matters covered in the budget were announced in the pre-budget report. The main ones are:
- 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.
Our data centre has a full briefing on the budget with further details.
If you have any queries please give us a ring.
SGC Towers
Director
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