• Tax rate on small companies to be raised in three stages from 20p this year to 22p in 2009.


• Corporation tax will be cut from 30p to 28p from April next year.


• Basic rate of income tax to fall from 22p to 20p from April next year.


• Top-rate income tax threshold will rise to £43,000 from April 2009


• The lower income tax starter rate of 10p to go, meaning all those who pay income tax will start at 20p


• Align the income tax with the national insurance system with its ceiling set at the same single threshold - £43,000 - thereby creating a tax system for income that has just two rates and two thresholds


• Tax exemption for capital gains will rise from £8,800 to £9,200, and will be £18,400 for married couples.


• Inheritance tax will rise from £285,000 now to £350,000 in 2010.


• Tightening the defintion of managed service companies who offer services to small businesses

General

• Grants of £300 to £4,000 for pensioners installing insulation and central heating in their homes.


• Beer will rise by 1p a pint from midnight Sunday, cider by 1p a litre, wine by 5p a bottle and sparkling wine by 7p. Duty on spirits will be frozen.


• Cigarettes to rise by 11p a packet. VAT on nicotine patches to be cut from 17.5 per cent to 5 per cent.


• Road tax on highest-polluting vehicles up to £400 from April 2008. The least-polluting vehicles to have their duty cut to £35.


• Fuel duty up 2p per litre, in line with inflation.


• Putting VAT on airline tickets ruled out.


• Education spending in England will rise from £60bn this year to £74bn in 2010. From now to 2010 spending per pupil rise by a further 20 per cent, 10 per cent in real terms, to £6,600


• Child benefit, for a first child, will rise from £17.45 a week to £20 a week by 2010.


• Tax-free allowance for pensioners under 75 will rise in three stages from £7,280 to £9,770 in 2011. For over-75s, the tax free allowance will rise annually from £7,420 to by £10,000 by 2011.


• All the 125,000 people who lost their pensions because of company insolvency will get help with a financial assistance scheme increased from £2bn to £8bn.


• Until 2012 all new zero carbon homes up to £500,000 will be exempt from stamp duty.


• 50,000 16 to 17-year-olds who sign activity and learning agreements will receive a training wage in return for gaining skills.


• £50m for a 10-country initiative across central Africa to prevent the destruction of the second largest rain forest in the world.


• £800m to the Environmental Transformation Fund, jointly run by the international development and environment secretaries.

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Susie Hughes
The Editor © Hardhatter 2007