PRE BUDGET ANNOUNCEMENT OCTOBER 2007

Key measures of interest to business owners included a series of reviews of the business taxation regime, aimed at simplifying the tax system for businesses and the self-employed. The Chancellor also confirmed that the main rate of corporation tax will fall by 2%, to 28%, from next year.

The capital gains tax system will also be subject to reforms, with the introduction of a single rate of 18%, with the stated aim of ensuring that private equity bosses pay their 'fair share'; while a number of 'loopholes' for non-domiciled taxpayers will also be examined.

The Chancellor made a much-anticipated announcement on inheritance tax, revealing that the 0% threshold on the death of the surviving partner of a marriage or civil partnership, on or after 9 October 2007, will increase by the proportion of the 0% band not used on the first death. As a result their 0% band currently £300,000 could potentially increase to £600,000, rising to £700,000 by 2010.

Other significant announcements include the introduction of a new aviation tax in 2009, which will tax individual flights rather than passengers, and increased investment in health and education, transport, and science and technology.

Click here to read more and download the Pre Budget report. 

For advice on how any of the announcements affect you or your business please contact BRUCE WILSON on 0845 241 6088.