-
Personal Allowances - 10p rate on first £1,500 taxable income
from April 99 (20% rate abolished). Basic Rate reduced to 22p from April
2000. Personal Allowance from April 2000 up to £87 per week (£4,524
pa) other thresholds upgraded in line with inflation. Larger increases
for Pensioners.
- Married Couples Allowance
- Replaced with 'Family Tax Credit' from April 2000 - Value £416 to
be tapered for 40% tax payers. (MCA remains for pensioners).
- National Insurance
- Upgraded in line personal allowances. Employers rate reduced to 11.7%
from April 2001.
- Maternity Pay - For
earners above £30 per week full pay for 18 weeks.
- Miras
- Reduced to 10% on First £30,000. Abolished from April 2000.
- Capital Gains Tax -
Threshold increased to £7,100. Rates changed to 20% and 40% (23% rate
dropped).
- Small Businesses -
Lower rate of 10p corporation tax on first £10,000 profit announced
beneficial for business with profits upto £50,000 from April 2000.
- Capital Allowances - First
year allowance stays at 40% until 1 July 2000.
- Inheritance Tax - Threshold
raised to 231,000.
- VAT Threshold & Rate
- Threshold raised to 51,000 - No change to rate.
- Road Fund License - Reduced
to £100 for vehicles upto 1100cc - Other vehicles increased with inflation.
- Duty on Fuel - Leaded
Petrol up 4.2p per litre, Unleaded up 3.79p per litre, Diesel up 6.1p
per litre.
- Duty on Cigarettes - Up
17.5p per packet.
- Computers for Employees
- Companies can loan computers to employees tax free.
- Mobile Phones - Benefit
in kind abolished.
- Personal Service Companies
- New rules are to be introduced for Computer Contractors and other
'Personal Service Companies' from April 2000. There is to be consultation
over the next 12 months to decide what may happen. The Government believes
that a number of organisations use these companies to avoid employing
staff directly, and therefore that the Treasury loses out on Tax and
National Insurance.
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the H M Treasury Budget Pages
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