News

Gordon Brown's final budget, held on 21st March 2007, might be described as "giving with one hand and taking back with the other".  A brief summary of the personal and business areas and allowances are listed below, but should you require any further advice please contact us.

PERSONAL TAX

                                                                             2006/07                    2007/08

Personal Allowance                                                 £5,035                       £5,225

Income Tax

  Starting rate                                                           10%                          10%

This 10% rate disappears from 2008 with the basic rate cut from 22% to 20%.

Inheritance Tax  

Threshold                                                           £285,000                    £300,000

Capital Gains Tax

Annual Exemption                                                   £8,800                        £9,200

BUSINESS TAX

Corporation Tax

Small Companies Rate                                             19%                              20%

Capital Allowances

From 2008/09, writing down allowances on qualifying plant and machinery will be reduced from 25% to 20%.

VAT

The registration threshold increases from £61,000 to ££64,000 effective from 1st April,2007.