Budget 2008 Press Release
As Alastair Darling plans to take an extra £34m from Hertfordshire taxpayers, a free new service is launched to help local taxpayers make sure they don’t foot more than their fair share of the bill
We have launched a “2008 Tax Minimisation Review” to help local taxpayers and businesses get to grips with the tax implications and tax saving opportunities after the Budget. Launching the new service after Alastair Darling finished his first Budget, Martin Dore, our Tax Manager said that:
“As expected this was a flat Budget because the Chancellor had so little room for manoeuvre. On the business front, we certainly welcome the extra money for women entrepreneurs and the small firms loan guarantee scheme. However, the big spending increases on the military and to tackle child poverty must inevitably be paid for by increased tax revenues. We estimate that Herfordshire tax payers will end up paying £34m more in tax a year - so there will be some real losers. And that’s why we’ve launched our free 2008 Tax Minimisation Review – to help the losers minimise the damage, and ensure that no-one pays a single penny more than their fair share of tax.”
Readers who would like to cut their tax bills, should contact our Halls Green office on 01462 791079 to arrange a FREE MEETING.
And for those of you who would like a summary here are the main points from the 12 th March 2008 Budget speech:
Tax rates
Corporation tax
- Reduction in CT rate for Companies with profits over £300,000 from 30% to 28%*
- Increase in CT rate for Companies with profits below £300,000 from 20% to 21%
* marginal relief is available for Companies with profits between £300,000 - £1.5million
Income tax
- Increase in basic personal allowances in line with inflation
- 20% increase in personal allowances for the over 65s
National insurance
- Increase in most bands in line with inflation
Capital gains tax
- Abolition of taper relief and personal indexation
- Increase in annual exempt threshold from £9,000 to £9,200
- A new Capital Gains Tax system, meaning all gains (except those under Entrepreneur’s relief) will be taxed at a flat rate of 18%
- Entrepreneurs relief for Capital Gains arising from the sale of business (subject to a life-time allowance of £1million) reducing the amount of Capital Gains tax payable.
Inheritance tax
- Higher than inflation increase in Inheritance tax threshold, increasing from £300,000 to £312,000.
- The limits above are doubled to cover the whole estate in the case of married couples and civil partners.
Stamp Duty Land Tax
- All rates remain unchanged
Other duties
Vehicle Excise Duties
- A new system to further tax vehicles with high emissions. This includes, in 2010/11, a first year rate for new vehicles purchased that year where the Excise Duty can be up to £950.
Fuel increase
- The planned 2pence per litre tax increase on fuel has been delayed until 1 October 2008 because of the current high petrol prices.
Alcohol and tobacco
- Generally, around inflation increases on most alcohol
- Generally, around inflation increases on most tobacco products
Benefits and allowances
State pension
- Increase in basic state pension in line with inflation
Other benefits and allowances
- Most other state benefits and allowances have been increased in line with inflation
If you have any questions relating to the Budget please do not hesitate to contact us.