When Skies Are Grey Posted March 21, 2007 Share Posted March 21, 2007 Some key points... Income tax The basic rate of income tax will be cut to 20p in the pound in April 2008. This was unexpected and was Brown’s final statement of the Budget. However, he also scrapped the 10p starter tax rate, meaning that all earners who pay income tax will start at 20p in the pound. Booze/Fags Duty on beer and cider is up by 1p per pint, wine is up 5p per bottle. Duty on spirits however has been frozen. Again. Does Brown like spirits? The price of a packet of cigarettes is going up by 11p a packet, and in another expected announcement, the VAT on aids to giving up smoking has been cut to 5% Inheritance tax The chancellor bowed to significant pressure by raising the £285,000 inheritance tax threshold to £350,000 by 2010 to take into account the sharp rise in house prices over the past few years. Capital gains tax The capital gains tax exemption threshold will rise from £8,800 to £9,200. Married couples will see £18,400 worth of capital gains become exempt from tax. Motorists He announced fuel duty increases. Fuel duty will rise by 2p per litre, deferred until October; 2p per litre next year and 1.8p per litre in 2009. Road tax on gas guzzlers will rise to £300 next year and £400 the year after. There will be a 30% cut for band B fuel-efficient cars – the second-most group of environmentally friendly cars. Road tax on fuel efficient cars will fall to £35 from £50. Link to comment Share on other sites More sharing options...
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