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Darling's winners and losers
Evening Standard25 Nov 2008
Winners
● Small companies: their one per cent increase in corporation tax due in April 2009 has been cancelled
● People on tax credits: their credits are increasing from 2009
● Consumers: VAT has been cut by 2.5 per cent for a year
● Large and medium-sized multinationals: dividends from foreign operations will be exempt from tax in a move aimed at stemming the exodus of UK-based firms abroad
● Lossmaking businesses: companies which have fallen into the red in the recession can reclaim taxes paid in the past three years rather than just one year
● Husband and wife businesses: the threatened legislation challenging the right of the highest earner to transfer their income to their partner (in order to pay a lower tax rate) has been kicked out
● Pensioners: they get a £60 handout in January as a downpayment on pension increases next year and have also been reassured their state pensions will rise by at least 2.5 per cent in future
Losers
● All employers and employees: will see an increase in their National Insurance contributions of 0.5 per cent from April 2011
● High earners on more than £150,000: they face an extra five per cent income tax on all earnings above that level
● Employees on £100-107,000: they suffer from the removal of higher-rate relief on personal allowances from April 2010
● Employees on £140 - £147,000: they will lose out on the abolition of personal allowances from April 2010
● Employees on more than £43,875 a year: they lose out in April from the alignment of income tax and National Insurance higher rates to the tune of £385 a year
● Frequent fliers: long-distance travellers will suffer a big increase in air passenger duty. London to New York goes up from £80 to £120 on business class
● Prudence: Darling's spend, spend, spend policies would leave her turning in her grave
Reader views (1)
No wonder the Government will not rule out the 3rd runway at Heathrow when they'll be getting 120 quid a business class ticket!
- Mark, London, 25/11/2008 20:33
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