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Budget Highlights
Eleventh Budget and One With An Eye On Number 10?
Gordon Brown's eleventh and probably final Budget Speech introduced a range of changes that will affect us all whether in business, employed or retired.
Prominent in his announcements was the proposal that the basic rate of income tax be reduced from 22% to 20% representing a 9% reduction, but not until April 2008 which is also the same month that the main rate of corporation tax is to be cut by almost 7% from 30% to 28%. However, the small companies' rate is to increase by almost 16% with the rate from 1 April 2007 increased to 20% moving upward to 22% from April 2009.
| "Is the light the chancellor can see at the end of the tunnel reality or mirage? Will Mr Brown's planned prudence after so much profligacy give the soon-to-be prime minister Brown sufficient leeway to end the fiscal squeeze before he goes to the polls?" Chris Giles, Economics Editor, Financial Times |
His announcements for businesses included changes to investment reliefs for capital expenditure qualifying for capital allowances.
The changes for individuals included an increase in the limit that can be invested in an ISA to £7,200 from April 2008 and the intention to increase the inheritance tax threshold to £350,000 from 6 April 2010.
The raft of forward announcements has been a characteristic of this Chancellor's time in office as have his claims to superior endeavours in the Budgets to focus on support for families, the building of a 'fairer society', setting out his green credentials using taxation as a means to reduce our impact on the environment together with headline announcements on high quality public services.
With over 80 Press Releases covering the major taxes, apart from inheritance tax, there is much detail that we await in order to see more clearly how the changes will affect our clients.
The Budget Speech is followed by the publication of Finance Bill 2007 and, in due course, probably around July 2007 the Finance Act 2007 will receive Royal Assent. This will trigger some of the changes that are outlined in our Report.
Our 2007 Budget service includes an easy to navigate report covering most of the personal and business changes. Please review our Report and, where you see announcements that are of interest, do please contact us in order that we may advise you regarding your own particular situation and requirement.
