• Proposed personal tax changes

    The government has announced significant changes to the system of personal allowances and tax rates for the next few years. These mainly impact on those with higher levels of income.

    Allowances and rates
    The 2009/10 personal allowance will be £6,475. The basic rate limit will be £37,400. Therefore an individual will pay 40% tax rather than the basic rate of 20% when their total income exceeds £43,875.

  • Temporary exemption on stamp duty land tax

    In a move to help the property market and first time buyers, Alistair Darling has introduced a Stamp Duty Land Tax (SDLT) exemption or holiday for purchases of residential property from 3 September 2008 to 2 September 2009 (inclusive). The exemption effectively raises the current nil rate band of £125,000 (£150,000 in disadvantaged areas) to £175,000 for the period of one year only.

  • CBI forecast a shallow recession

    A CBI forecast has predicted a ‘shallow recession’ during the final part of 2008 and that growth in the economy in 2009 will be the lowest since 1992.

    The CBI’s latest economic forecast has revised its growth predictions for 2008 and 2009 due to the sharper than expected slowdown over the first half of this year. Their forecast takes into account the impact of weak consumer demand, high energy and commodity prices and the effects of the credit crunch.

  • Extra take home pay

    For many employed individuals who are checking their payslip this month it should include a welcome bonus of a £60 reduction in their income tax deduction. The reason for this is the increase in the personal allowance which finally took effect for paydays from 7 September. Don’t expect the bonus each month as the effect for October onwards will be a reduction in tax of £10 a month!

  • HMRC announce additional personal allowances

    HMRC have now issued further guidance on the increase in the personal tax allowance which is due to take effect from 7 September 2008.

    The guidance is aimed at both employers and employees. Although the increase takes effect for pay dates from 7 September onwards the change will effectively be backdated for the majority of individuals until the beginning of the tax year.