Tonight:
4°c
Darling's winners and losers
Evening Standard25.11.08
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
