Just watched Little Britain for the first time

what a pile of s**t.

Moving on....

The Budget:

Alistair Darling presents his first full UK Budget on Wednesday 12th March 2008. Against the background of the Northern Rock situation, opposition to proposed changes to the taxation of foreign domiciliaries and concerns over the global credit crunch, the speech is one of the most anticipated in years.

Rumours about the content of the Budget are circulating, but some announcements have already been made which take effect from 6th April 2008. To follow is an overview of the changes already announced:

Tax Rates and National Insurance

One of Gordon Brown’s last acts as Chancellor was to announce a headline grabbing 2% cut to the income tax basic rate band. There was also alignment of National Insurance and income tax thresholds. From April 2008 the basic rate of income tax will be reduced from 22% to 20%. However, the starting rate band of 10% will be removed for earned and pension income, but remains for savings income. This, coupled with the increases with National Insurance thresholds, could mitigate any benefit the reduction of basic rate tax brings.

Personal Allowances

Allowances for those over 65 increase dramatically. For those aged between 65 and 74, the first £9,030 of income is tax free, and those over 75 will not pay tax on the first £9,180. The basic personal allowance will rise in line with inflation to £5,435.

Inheritance Tax - Nil-Rate Band

From 6th April 2008 the nil-rate band for Inheritance Tax will be set at £312,000. Since 9th October 2007, any previously unused nil-rate band on a persons death can be applied to the surviving spouses estate, effectively doubling the band.

Trusts – Transitional Period

Following the Finance Act 2006, dramatic changes were introduced to the Inheritance Taxation of trusts. A transitional period was included for Accumulation and Maintenance trusts established before 22nd March 2006, which ends on the 6th April 2008.

Company Cars

As part of the Governments initiative to encourage environmentally friendly transport, a low rate of tax will apply to cars with low carbon dioxide emissions. This is aimed at cars whose emissions are 120 g/km or lower.

Tax Returns

A slight amendment to the deadline for submitting tax returns will apply. To encourage on-line filing, returns for 2007/08 must be submitted by:

31st October 2008 for paper returns
31st January 2009 for electronic filing
Currently, HMRC can open an enquiry into a tax return at any point up to twelve months from the filing deadline (31 January following the tax year end). From April 2008 the enquiry window will be restricted to one year following the actual date of filing.

ISA Limit

From April 2008, this will rise to £7,200, with an increase in the cash limit to £3,600.

Proposed Changes

The following are also due to be effective from April 2008:

New capital gains tax legislation introducing a flat rate of 18% on all disposals
Changes to the day count for non-residents, meaning the day of arrival and departure will need to be included (THE FUCKING UTTER CUNTING BASTARDS)
Taxation of foreign domicilairies (although there has been lobbying for a year’s deferral)
New legislation on 'income shifting' which will govern income from profits from a partnership and company distributions, most commonly dividends. It is designed to catch married couples or civil partners who seek to share business profits that have been generated substantially by the efforts of only one individual in the relationship.

Posted By: Tomblander on March 7th 2008 at 21:34:18

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