"No return to boom and bust" is on the agenda according to the chancellor, but with 81 budget notes there have been some major changes announced to simplify income tax, tinker with corporation tax and overhaul the capital allowances system for long and short life assets.
Major new announcements, with links into tax features
Major simplification measures include:
- 10% starting rate band to be abolished from 2008
- basic tax rate cut from 22% to 20% by 2008
- Top rate band of income tax to rise to 43,000 by 2009
- Confirmation of the Carter proposal that the SA enquiry window will be aligned with the filing date.
Upper earnings limit raised by 75 by 2008 and aligned with higher rate threshold by 2009