Budget Review
By admin
Issued on behalf of Richard Gough, chartered financial palnner and Director of Castle Court Consulting
This Budget has seen a welcome tax break for high earners – an unusual event from this Chancellor – with an increase in the Higher Rate Tax threshold to £43,000, but not until April 2009.
For the owner managed business community there was a wealth of incentives, modernisation and major reform which when implemented fully will impact on every business individual in Wales.
This includes changes to corporation tax rates as well as the capital allowance regime and a 175% allowance for R&D.
While mainstream corporation tax is to be cut to 28% from April 2008 – “one of the lowest of all major economies” – this was countered by a rise in the smaller companies’ rate from the current 19% to 22% in stages.
This rise that will have far more impact on the business community in Wales than the mainstream rate cut and there will clearly be the need for businesses to review this Budget carefully to assess the actual impact on their strategies and trading mediums.
With claims of a strong economy growing at 2.5% to 3% and the strongest out of the G7 economies, the Chancellor looked to provide an environmental slant on his budget with a number of measures designed to reduce the carbon emissions.
This budget is definitely aimed at lower earners and pensioners, is more complex than usual for business owners and will require detailed assessment on its impact on local businesses – more so than has been
