Oct 10 2007
The small print of the Tax raising budget
The overall impact of the pre budget statement is to increase taxes. Specific tax increases include:
1. Higher CGT overall thanks to the abolition of taper relief. The proposal hits long term investors and people building their own businesses particularly hard, by raising their tax rate by 80%.
2. A new tax on business which can be levied by Councils to carry out specified improvements.
3. A new tax on developers when they obtain planning permission
4. Some new tax on non doms
5.Removal of national insurance contributions exemption
6. Various anti avoidance measures
7. Aviaiton duty
The pre budget statement raises over ??1 billion of extra revenue by 2009-10.
The total increase in taxes planned for 2008-9 is a whopping ??27,700 million, showing the impact of currrent tax rates on increased incomes through inflation and growth. We doubtless will also have to live with a very aggressive Inland Revenue constantly looking for new ways of extracting revenue within the present tax law, which is generating more complaints to MPs.
The issue is why did he need to spend all of the extra ??27 billion coming in? Why couldn’t he accelerate his ??30,000 million savings programme to give the taxpayer some proper relief?
John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
Interesting that Tory tax proposals for non-doms are rubbished for discouraging doctors, nurses and engineers from seeking work in the UK. ‘British jobs for British workers’ or did I mishear this mantra from Brown.
I’m glad to see the statement followed the golden rule; that is ‘He who sold the gold bends the rules’.
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