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Midas Accountancy
Accountancy | Bookkeeping | Tax Planning | Consultancy | Payroll
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The information in this site is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action. © 2007 Midas Accountancy All Rights Reserved. 23 Hazel Road | Four Marks | Hampshire | GU34 5EY 71 High Street | Fordingbridge | Hampshire | SP6 1AX T (01420) 563879 | E queries@midasaccountancy.co.uk |
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2008 Budget Update |
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Headline Figures
Income Shifting New legislation regarding Income Shifting have been postponed for the time-being.
Entrepreneaur’s Relief New rules regarding capital gains tax have now been implemented. Please see Volume 3 of our tax newsletter for further details. |
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2007-08 |
2008-09 |
Change |
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Income Tax: |
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Personal Allowance (age under 65) |
£5225 |
£5435 |
+£210 |
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Starting Rate (10%) |
£0—£2230 |
- |
- |
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Basic Rate (22% 2007 –08 and 20% 2008-09) |
£2231—£34600 |
£0—£36,000 |
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Higher Rate (40%) |
Over £34600 |
Over £36000 |
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There will be a new 10% starting rate for savings income only with a limit of £2320. There is no change to the 10% dividend ordinary rate of the 32.5% dividend upper rate. |
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Corporation Tax on Profits: |
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£0—£300,000 |
20% |
21% |
+1% |
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£300,001—£1,500,000 |
Marginal Relief |
Marginal relief |
- |
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£1,500,001 or more |
30% |
28% |
-2% |
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Capital Gains Tax: |
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Capital Gains Tax Annual Exempt Amount—Individuals |
£9,200 |
£9,600 |
+ £400 |
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Capital Gains Tax Annual Exempt Amount—Trustees |
£4,600 |
£4,800 |
+ £200 |
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Inheritance Tax: |
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Individual Inheritance Tax allowance |
£300,000 |
£312,000 |
+£12,000 |
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