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

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. “There’s a lot of headline grabbing stuff, but when you look at the numbers, it’s a merry-go-round,” he added.

“He’s dropped 2% on corporation tax, but he’s reducing the allowance for plant and machinery, this nets out with a positive figure. It’s actually a revenue raiser.

Continued...

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Comments

Why no comment on small companies rate?

JSJ54 | | Permalink

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%!

Benefactor? I don't think so!

Anonymous | | Permalink

Please note the difference between 'benefactor' and 'beneficiary' - the Labour party and the Treasury are anything but benefactors in this Budget!

Charities

nigelreese | | Permalink

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.