Pre-Budget Report
Main points at a glance
Growth forecast for the UK economy in 2008 cut from 2.5 to 3 per cent to 2 to 2.25 per cent.
Capital gains tax ‘taper relief’ abolished to create single rate of 18 per cent from 6 April 2008. This change is designed to close a tax loophole that benefits private equity but its effect will be wider.
Inheritance tax thresholds increased to £600,000 immediately and to £700,000 from 2010 for all married couples and civil partnerships. Backdated for widows and widowers.
Non-domiciles, plans to levy a £30,000 flat rate charge for non-domiciled residents after they have lived in Britain for seven years.
Changes to the state second pension, brought forward to 2009, raising £440m.
Proposals to stop the tax savings available to businesses by income shifting between family members.
An increase in the car fuel scale charge.
Air passenger duty paid by customers on business class-only airlines doubled to £80 from November 2008, closing a loophole whereby they paid the economy class rate. The duty to be fundamentally reformed from November 2009 to a tax on aircraft rather than passengers, reflecting journey length and emissions. Total changes will raise £520m by 2010.
Public borrowing in 2008-09 raised by £7bn to £36bn.
Health spending rises by 4 per cent in real terms in 2008-09 and 2010-11.
New single budget to cover the police, security services and other anti-terrorism operations. This will rise to £3.5bn in three years’ time.
Extra £2bn in public spending starting from 2010-11.
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 | This article is for your general information and use only and are not intended to address your particular requirements. The articles are based on our understanding as at the 7th November 2008. They should not be relied up on in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Articles that make reference to the Pre-Budget Report are subject to the Finance Bill becoming law. |