Pre-Budget Report 2008

Chancellor Alistair Darling presented his second Pre-Budget Report on Monday 24 November 2008. As expected Mr Darling concentrated on measures to protect and support businesses and individuals in these 'extraordinary, challenging times for the global economy'. This summary concentrates on the tax measures which are being introduced.  The main tax proposals are:

• reduction in standard rate of VAT from 1 December 2008
• changes to personal allowances including prospective reduction in the basic personal allowances for individuals with income above £100,000
• a prospective new income tax rate of 45%
• deferral of the planned increase in small company corporation tax rate
• new loss carry back provisions
• details of changes to capital allowances for cars.

Our summary focuses on the direct and indirect tax measures which are buried in the Treasury and HMRC press releases. We concentrate on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.