Budget 2008

Tuesday 13 May 2008 Chancellor's Announcement

Helping low-income customers affected by the changes to the personal tax system announced at Budget 2007

Earlier today, the Chancellor of the Exchequer, Alistair Darling, announced changes to the personal tax system to help low-income customers affected by the abolition of the 10% starting rate of income tax. The personal allowance for the 2008-09 tax year will be increased by £600 from £5,435 to £6,035, and the threshold at which someone starts to pay higher rate tax will be reduced by £600.

The point at which customers start to pay higher rate income tax is sometimes called the 'higher rate threshold'. It is the total of the personal allowance and the basic rate limit. To reduce the higher rate threshold as announced by the Chancellor, the basic rate limit will be reduced by £1,200 from £36,000 to £34,800. Higher rate taxpayers will see no difference in the amount of tax they pay.

The full text of the Chancellor’s announcement is available on HM Treasury’s website.

Wednesday 12 March 2008

The 2008 Budget Report, was published on 12 March 2008.

All press notices and HM Revenue & Customs supplementary documents relating to the Budget Report are available by following the links on the left to find out more.

For concise, up-to-date and easy to digest Budget information visit Directgov.

To find out how the chancellors budget affects your business visit Businesslink.

Additional publications relating to the Report will also be available from the HM Treasury Web Site.

HM Treasury have also provided a separate Budget microsite which highlights the key points of how the Budget will affect you.

Compressed (zipped) files

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