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Alistair Darling presented his first Budget on Wednesday 12 March 2008.

After the Northern Rock saga and the changes of mind on the ‘simplification' of capital gains tax, will it be his last?

On the economy, the Chancellor stated that there will be no recession although he conceded that growth up to 2010 will be less than previously forecast. Borrowing will go up as a result.

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.

Main Budget proposals

     Plans to stop the tax savings available to businesses by ‘income shifting' are delayed for one year
     Further details on the changes to the capital allowances regime including the taxation of company cars
  •      Improvements to the Enterprise Management Incentive scheme
  •      Annual charge on non-domiciles still to be introduced but some relaxations made to the original       proposals
  •      Income tax relief extended for the Enterprise Investment Scheme

Previous announcements

Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:

  •      Reduction in the basic rate of income tax and significant increases in national insurance
  •      Increase in the investment limits for ISAs
  •      The abolition of taper relief and indexation allowance for capital gains tax (CGT)
  •      The introduction of a flat rate of CGT for individuals of 18% and a new Entrepreneurs' Relief
  •      A significant change in inheritance tax relief for married couples and civil partners

The Budget proposals may be subject to amendment in the Finance Act. You should contact us before taking any action as a result of the contents of this summary.

T/A Zareef Kahloon & Co.