The Budget at a glance

Were you a winner or loser?

• EMPLOYMENT

• Unemployed and low paid
• Unemployment claimant count at 920,000.
• Review of National Insurance and income tax system for lower-paid workers.
• The number of low-skilled jobs will fall from 2.1m to 600,000.
• Women
• New help for working women to close the pay gap with men.
• Funding doubled for training low-skilled women as part of measures to bring more than 30,000 lone parents into work.

• INCOME TAX

• Lower rate
• 10p income tax band to be scrapped from April 2008.
• Basic rate
• Basic rate of income tax to fall from 22p to 20p from 6 April 2008.
• Allowances
• Personal allowance:
• Under 65 increased from £5,035 to £5,225
• 65 - 74 increased from £7,280 to £7,550
• 75 and over increased from £7,420 to £7,690
• Married couples/civil partners allowance (relief at 10 per cent):
• Age 65 before 06/04/2000 increased from £6,065 to £6,285
• Age 75 and over increased from £6,135 to £6,365
• Minimum amount increased from £2,350 to £2,440
• Child element of child tax credit to rise 14 per cent over three years – worth up to £88 a week by 2009 for a two-child family.
• Children to get an additional £250, or £500 for those in low paid families, in their Child Trust Funds at the age of seven.

• TAX CREDITS

• Working tax credit up by £1bn per year.
• Level at which family with two children pay tax is now at £22,500 and set to rise to £24,250 by 2009.

• INHERITANCE TAX

• Thresholds
• From 6 April 2007, the amount of money that people can pass on without facing inheritance tax increased to £300,000.
• The threshold will rise to £312,000 in April 2008, to £325,000 in April 2009 and to £350,000 in 2010. Above those thresholds, tax will continue to be charged at 40 per cent.

• CAPITAL GAINS TAX

• Allowance increased for individuals from £8,800 to £9,200 this tax year.
• Allowance increased for trusts from £4,400 to £4,600 this tax year.

• PROPERTY

• Stamp duty
• For residential land and property outside of disadvantaged areas there is no change to the current bands:
• 0 per cent up to £125,000
• 1 per cent from £125,001 to £250,000
• 3 per cent from £250,001 to £500,000
• 4 per cent over £500,000
• No stamp duty on zero-carbon homes up to £500,000.
• Details published on REITS (real estate investment trusts).
• Measures worth £970m for shared equity to help new homeowners on to the housing ladder.

• SAVINGS

• Cash ISA allowance up 20 per cent to £3,600 from 6 April 2008.

• MOTORISTS

• Emissions
• Tax on the highest-polluting vehicles or 4x4s up to £400 this year.
• Tax cut for low-emission vehicles from £50 to £35.
• Fuel duty
• Annual increase in fuel duty suspended until this October.
• Fuel duty to rise by 2p a litre in 2008 and by 1.8p in 2009.

• EDUCATION

• Student debt
• Student debt worth £6bn to be sold off.

• PENSIONERS

• From April 2008 people aged 65 will not pay tax on earnings below £8,460.
• For those over 75, the tax-free allowance will rise annually to £10,000 by 2011.
• Pension Credit will rise from £114 to £130 per week by 2009/10.
• Retired people will receive between £300 and £4,000 for the installation of insulation and central heating.

• HEALTH

• NHS to receive an extra £10bn this year.
• The investment levels for 2008 to 2011 will be decided in the forthcoming spending review.

• DEFENCE

• A £1m endowment for the fund of families that have been affected by terrorist acts at home and abroad.

• BUSINESS

• Taxation
• The size of companies that can claim higher tax credits for research and development is to be doubled.
• Tax credit for creative industries will be expanded.
• Tax incentives for venture capital to be reduced to 30 per cent relief for investments in venture capital trusts.
• Mainstream corporation tax reduction from 30p to 28p from April 2008.
  Corporation tax increase on small corporations to rise from 20p to 22p by 2009.

• ENVIRONMENT

• Climate change
• Climate change levy to be inflation indexed.
• Proposals to strengthen and extend the European Union emissions trading scheme will be introduced.
• Industry consultation on carbon capture technology.

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