Budget 2007: Net zero budget leaves institutes cold. By Rob Lewis

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The only real beneficiary of the latest budget is the Labour party, says the ICAEW. Rob Lewis reports.

The reforms may appear drastic, but their effects will be far smaller than purported, said Frank Haskew, Head of the ICAEW tax faculty. Theres a lot of headline grabbing stuff, but when you look at the numbers, its a merry-go-round, he added.

Hes dropped 2% on corporation tax, but hes reducing the allowance for plant and machinery, this nets out with a positive figure. Its actually a revenue raiser. Similarly, hes decreased income tax by 2%, which will cost the Treasury about 8 billion. But then hes removed the 10% threshold on personal income, and hes aligned the high-rate threshold for national insurance and income tax, which should earn him about 8.4 billion.

Beneath it all, it cou...

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Why no comment on small companies rate?
As a member of the ICAEW why the hell isn't the truth being told about Stalin's (sorry Brown's) treatment of small limited companies. In his terms he has increased their tax rate by 16%!

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Benefactor? I don't think so!
Please note the difference between 'benefactor' and 'beneficiary' - the Labour party and the Treasury are anything but benefactors in this Budget!

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Charities
Why hasn't anyone spotted that charities who obtain covenant reclaims are going to lose 10% of this income thanks to the reduction in basic rate tax? The whole charity sector should be up in arms at this.

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