Amex Associates -Tax Calendar 2008/09

We summarise below how these announcements affect you.

UK Economy

The recession has forced the Chancellor to rip up his economic forecasts made in the Pre-Budget Report in November, in which the economy was expected to contract by just 1.25 per cent. Mr Darling said that he expected the economy to start growing again towards the end of this year, before growing by about 1.25 per cent in 2010 and 3.5 per cent in 2011.

Personal taxation

New 50pc tax rate for those earning more than £150,000 to take effect from next April - a year earlier than planned.

No income tax increase this year.

Pensions and savings

From April 2011, pension tax relief for those with incomes over £150,000 will be restricted so it is gradually tapered to the 20pc rate.

Personal allowances to be fully withdrawn for those with incomes over £100,000 from next April.

Chancellor confirms commitment to increase the basic state pension by at least 2.5pc, regardless of RPI.

Capital disregard on Pension Credit to be raised from £6,000 to £10,000 from November 2009.

Alcohol and tobacco

Alcohol duties will go up by 2pc from midnight tonight.

Tobacco duty will rise by 2pc from 6pm tonight.

Education

£250m this year and £400m in 2010/11 for an additional 54,000 places in sixth forms and further education colleges, with consequential provisions for Scotland, Wales and Northern Ireland.

Housing and homeowners

A scheme to guarantee securities backed by mortgages to increase lending.

Stamp duty holiday on properties sold for less than £175,000 extended until the end of the year.

An extra £80m is to be given to the HomeBuy Direct, the Government's shared equity mortgage scheme.

£1bn to help homeowners and boost housing.

£500m of extra financial support to kick-start building on housing projects stalled because of the credit crunch, including £100m for councils to build new energy-efficient housing.

Employment and training

An additional £1.7bn for Job Centre Plus and the New Deal is to be provided.

Additional support for people who have been out of work for 12 months.

From January everyone under the age of 25 who has been jobless for 12 months will be offered a job or a place in training.

Government working with employers to create or support as many as 250,000 jobs.

£260m of new money will be allocated for training and subsidies for young people to help them gain skills and experience.

Statutory redundancy pay up from £350 to £380 a week.

Business

Chancellor is extending help allowing loss-making companies to reclaim taxes on profits made in the last three years to November 2010. £2.5bn to encourage business investment in industries of the future.

New £750m Strategic Investment Fund to help emerging technologies and regionally important sectors in advanced businesses.

Businesses' main capital allowance rate doubled to 40pc, giving enhanced tax relief to support investment of £50bn this year.

Motoring and transport

Fuel duty will increase by 2p per litre in September and then by 1p a litre above indexation each April for the next four years.

Car scrappage scheme will be implemented next month to provide motorists with a £2,000 discount on new vehicles bought when they trade in cars over 10 years old. The scheme will end in March 2010.

Tax avoidance

Expects to raise £1bn of extra revenue over the next three years by closing tax loopholes and schemes .

Green measures

Additional £1bn to help combat climate change by supporting low-carbon industries and green jobs.

Chancellor presenting the world's first ever carbon budget, committing Britain to cut carbon emissions by 34pc by 2020.

£525m of new support over the next two years for offshore wind projects.

£405m to encourage low-carbon energy and advanced green manufacturing in Britain to drive new technology and investment in small-scale projects.

Financial services

Treasury paper to be published with recommendations for wide-ranging reform of financial services, including action to reduce the impact of the failure of financial firms.

Armed forces

£50m of spending being brought forward to speed up modernisation of armed forces housing.

Child Tax Credits

From April next year, the child element of Child Tax Credit to increase by £20. Children with disabilities to get extra £100 a year in their Child Trust Fund, with an extra £200 each year for those with severe disabilities.

Pensioners

Pensioners' Winter Fuel Allowance to be kept at higher level of £250 for over-60s and £400 for over-80s for another year.

Savers

Annual limit for tax-free ISAs increased to £10,200, of which £5,100 can be saved in cash. New limit introduced this year for over-50s, next year for others.

If you would like to know further about how this year's budget affects you or your business, or would like specific advice, please call on 020 8416 7000.