Budget 2008

A significant amount of information has been released in the aftermath of the Budget speech and it will take time to study and consider the announcements made.

Having said the above, it would appear that the following key points arise out of this year's Budget:

Income splitting rules deferred
Proposed new rules that would have allowed the Revenue to reallocate dividend income from family companies to reflect who has worked in the company have been put off for at least a year.

No domicile backdown
The £30k tax payment for long-term UK resident non-domiciled individuals who want to continue to pay tax only on remitted foreign income and gains will be with us from 6 April, with only minor amendments. Individuals looking to pay the £30k charge will also lose the benefit of their annual income tax allowance and capital gains exemption

Entrepreneur's Relief - as announced
No further concessions have been made. Entrepreneur's Relief will apply to reduce the effective rate on qualifying gains to 10% but only up to a lifetime total of £1 million per individual.  Otherwise an 18% capital gains tax rate will apply.  If you are looking potentially to bank the benefit of taper relief and/or indexation relief, you must act before 6 April 2008.

Useful downloads
Download our 2008 Budget summary and Tax Data Card 2008 here

Press releases

Non-doms are a non-issue for sheepish Darling
Good news for husband and wife businesses
Car tax revs up hit list
Red Ken relief?
Not much bite for SMEs

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