News - What’s in the Budget?
These are some of the main points covered by Gordon Brown in his Budget speech
DutiesFrom Monday, there will be a rise of 1p on a pint of beer and 4p on a bottle of wine, but duties on cider and sparkling wine are frozen.
Cigarettes will go up by 8p a packet.
From 1 April, firms with turnover under 58,000 will not have to register for VAT.
For an initial period of one year, investment
allowances for the smallest will be increased from 40% to 50%.
For the next two years, venture capital trusts will get tax relief of up to 200,000 a year at the higher rate of 40p instead of at 20p.
The Chancellor proposes to close a loophole which allows small business owners to claim their income as dividends, avoiding tax and National Insurance.
He also intends to tackle loopholes in partnerships, finance leasing and VAT. It will be a requirement - as it is in the US - that accountancy firms and those promoting avoidance schemes register them
with the Inland Revenue. Vehicle excise duty for cars and lorries has been frozen.
Fuel duties will not go up until September. Low sulphur fuel will increase by 1.9p a litre, the new sulphur-free fuel will go up by 1.4p; red diesel, fuel oil and liquefied petroleum gas will rise by 2.4p a litre.
Stamp duty rates and have been frozen.
Tax rates have been frozen and the starting point for tax raised to 263,000 from 255,000.
The economy grew by 2.3% in 2003. Growth in 2004 and 2005 is expected to be between 3% and 3.5%, falling in 2006 to between 2.5% and 3%.
Duties
The duty on spirits is to be frozen for the remainder of the current Parliament.
Business
allowances for the smallest will be increased from 40% to 50%.
Click here to watch full BBC coverage of the Budget
with the Inland Revenue.
Motoring
There will be an extra 100 for pensioners over 70 to help with increases in council tax.
Tax
Investment
Real estate investment trusts will come into effect. These allow people to buy a share in a group of properties, putting more money into the housing sector.
A cap on pension pots will be introduced at 1.5m - it had been expected this would be 1.4m.
Economy
Posted by rometw on 04-10-2008 at 09:04 am
Posted in Finance insurance
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