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News in Detail

Budget 2008

Monday 17th March 2008 - 10:20

The Good News

The basic rate of income tax will reduce from 22% to 20% from 6th April; this is good news for many taxpayers.

The winter fuel allowance will be increased from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.

Just over £1 a week increase in a child tax credits will start from 2009 instead of 2010.

Couples or single parents earning up to £18,000 a year will have an increase to child tax credit of £50 a year. 

From April, 2009, child benefit will be increased to £20 a week.

£17 more a week for poor families with one child.

A family with two children earning up to £28,000 a year will be £130 a year better off.

The Bad News

Cigarettes – packet of 20 up by 11p  

Five cigars up by 4p

Beer up by 4p a pint

Wine up by 14p a bottle 

Spirits up by 55p a bottle

Cider up by 3p a litre

Duties on alcohol will go up by 2% above inflation in each of the next four years.

The lowest-polluting new cars will pay no road tax in the first year from 2010.

Highest-polluting new cars will pay £950

From October 2008 there will be 2p increase in fuel duty.

Winners
People who do not drink, smoke or drive are the winners in this Budget. 

Personal tax allowances have been increased by 4 per cent, giving middle income earners an overall tax cut from April.

People earning £35,000 a year will not have to pay more National Insurance and will be better of by £32 per month.  

People earning over £40,000 and up to £41,435 will also see a reduction to 21 percent in their marginal rate of tax and NI.

Losers
People earning £8,000 a year will be worse off around £12 per month.

Those who earn £15,000 a year or less will have more of their income taxed at 20 per cent rather than the 10 percent starting rate.

 

 

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