Budget 2008 - Main Points

Here are the key business points from Alistair Darling's first Budget. Check back here for updates, including the latest tax tables and allowances.

Key Budget Changes

Borrowing in 2008/9 will rise to £43bn (2.9% of national income).
The planned 2p rise in fuel duty will be postponed until October this year.
Corporation Tax - main rate will be cut from 30% to 28%, as predicted.

CGT taper relief will be abolished, and "Entrepreneurs' Relief" will also come into play from April 2008.
Next year, an extra £60m in funds will be provided for the Small Firms Loans Guarantee Scheme; all small companies will be eligible.
Small firms will get better access to public sector contracts - with a target of 30% of all contracts within the next 5 years.
There will be a £12.5m "capital fund" to encourage women entrepreneurs.
Tax Avoidance - further measures will be announced today.
The Chancellor plans to simplify taxes for small companies.
The Cash ISA limit will be increased to £3,600 next tax year.
Chancellor wants to encourage longer-term fixed rate mortgage deals in the future.
Plans to discourage the use of plastic bags - legislation to come in 2009.
From 2009, major reform of Vehicle Excise Duty with the introduction of new tax bands. From 2010, more polluting cars will pay higher taxes in the first year, the least polluting cars will pay no tax.
Capital Allowances for business cars will also be reformed.
Cigarettes up 11p.
Alcohol Duty will rise by 6% above the rate of inflation.
Income Tax (Basic Rate) will fall by 2p to 20p, and the 10% band will be scrapped from April 2008.

Those are the main points - overall, quite a vague Budget, so presumably the real detail will follow!
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Sign Up! - Make sure you sign up to our FREE weekly newsletter for the latest tax news and advice for small companies. Posted March 12, 2008

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Latest articles in Budget 2008

HMRC backlog as firms rush to sell before April CGT deadline
[March 18, 2008] Following the Chancellor's announcement that the CGT taper relief regime is set to be abolished on April 5th 2008, The Times reports that HMRC are holding up thousands of businesses who want to sell up before the new CGT rules take effect.

Business reaction to Budget 2008
[March 13, 2008] Reaction to the Budget from various business organisations.

Budget 2008 - Main Points
[March 12, 2008] A summary of the key points from Alistair Darling's first Budget.

Budget 2008 speech - in full
[March 12, 2008] Full text of Alistair Darling's full Budget 2008 speech.

Budget 2008 - What can small businesses expect?
[March 12, 2008] With the Budget just hours away, we take a brief look at what the Chancellor may have in store for small business people.

Budget 2008 - Tories call for further Corporation Tax cut
[March 10, 2008] Shadow Chancellor George Osborne has called for a further cut in the main corporation tax rate, ahead of the Budget next week.

Budget 2008 - Key Tax issues facing the Chancellor
[March 7, 2008] With the Budget just days away, BDO Stoy Hayward has taken an in-depth look at some of the key issues facing Alistair Darling, and possible solutions, ahead of his first full Budget.

Budget 2008 - Calls for less theatre and more help for businesses
[March 4, 2008] As Budget 2008 nears, the CBI has sent Alistair Darling an "alternative speech" to save the nation from what is bound to be a high-spin, low-meat affair, mainly due to the worrying state of public finances.

Entrepreneurs' Relief - Draft legislation released
[February 29, 2008] The Government has released its draft legislation for the new "entrepreneurs' relief" scheme, which will replace the current Capital Gains Tax taper relief regime on 6th April 2008.

Budget 2008 - FSB asks Chancellor to give small companies a break
[February 26, 2008] A leading business organisation calls on the Chancellor to give small businesses a break on Budget Day - 12th March.

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