budget 2007

Budget 2007 – Farming and Estate Summary

As Prime Minister in waiting, Gordon Brown will be well aware that a government’s prospects of re-election can be determined by how deep they have delved into the electorate’s pockets. With the UK farming sector being gradually disenfranchised, can it be any surprise that the 2007 Budget showed little compassion for the sector? Tax Rates and Allowances Corporation Tax The main rate of corporation tax will reduce from 30% to 28% with effect from 1 April 2008. The small companies’ rate increases from 19% to 20% with effect from 1 April 2007, increasing to 21% from 1 April 2008 and 22% from 1 April 2009. Increases in the small companies’ rate together with a decrease in the personal tax basic rate is intended to ensure "fairness across the tax system" removin... »

Budget 2007 – Construction Industry

The Chancellor promised a “Budget to expand prosperity and fairness” – he does not appear to have applied this to the construction industry. With the industry feeling the pain of introducing the new construction industry scheme, it could appear that it has been harshly treated by the Chancellor. Attacks on managed service vehicles, which have been widely used by the industry, as well as an increase in aggregates levy and a 166% rise in landfill tax will mean many unhappy taxpayers. Tackling Composites and Managed Service Companies Seven years after imposing PAYE and NIC for personal service companies (PSCs – generally owned and managed by the worker), under the “IR35” rules, parallel and tougher legislation was announced to tackle managed service compani... »

Grant Thornton

HM Treasury’s United Kingdom Budget 2007

Income Tax Rates Taxable income Rate Cumulative tax 2007/ 2008 2006/ 2007   2007/ 2008 2006/ 2007 £ £ % £ £ 1-2,2301 1-2,1501 10 223.00 215.00 2,231-34,6002 2,151-33,3002 22 7344.40 7,068.00 over 34,600 over 32,400 40 – – Savings income (excluding dividends) is taxed at 10% within the starting rate band and at 20% within the basic rate band Rate applicable to discretionary and accumulation and maintenance trusts is 40% above standard rate band of £1,000; within this band tax rate is 10%, 20% or 22% depending on nature of income. 1 Starting rate band 2 Basic rate band The figures shown here are subject to ammendment as the Finance Bill passes through Parliament. This information has been prepared only as a topical guide to tax and personal fina... »

bought to you courtesy of Grant Thornton

HM Treasury’s United Kingdom Budget 2007

Income Tax Rates Taxable income Rate Cumulative tax 2007/ 2008 2006/ 2007   2007/ 2008 2006/ 2007 £ £ % £ £ 1-2,2301 1-2,1501 10 223.00 215.00 2,231-34,6002 2,151-33,3002 22 7344.40 7,068.00 over 34,600 over 33,300 40 – – Savings income (excluding dividends) is taxed at 10% within the starting rate band and at 20% within the basic rate band Rate applicable to discretionary and accumulation and maintenance trusts is 40% above standard rate band of £1,000; within this band tax rate is 10%, 20% or 22% depending on nature of income. 1 Starting rate band 2 Basic rate band The figures shown here are subject to ammendment as the Finance Bill passes through Parliament. This information has been prepared only as a topical guide to tax and personal fina... »