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Budget Report for 2005
Summary of the Chancellors statement
Budget 2005: Tax and benefits
The chancellor raised the threshold for stamp duty and inheritance tax
and offered a council tax rebate to OAPs. Ahead of the general election,
Gordon Brown detailed offered assistance to key sections of the public.
 Corporation
and capital gains tax frozen.
Air passenger
duty frozen.
Insurance
premium tax frozen.
Climate change
and aggregates levy frozen.
Company car
tax frozen.
From midnight
on Sunday the normal annual inflation rise of one penny on a pint of beer,
four pence on a bottle of wine but duty on spirits, cider and sparkling
wine will be frozen.
Cigarettes
tax will rise by the annual inflation rise of seven pence a packet from
six o'clock this evening.
Chancellor
is proposing to the European Commission that the tax free limit on goods
brought into the UK from outside the European Union should rise from £145
to £1,000.
The usual
inflation increase for fuel duty deferred until September 1.
For three
years, the lower duties planned for natural gas, bioethanol, biodiesel
and liquefied petroleum gas will continue.
Normal inflation
rise for vehicle excise duty on medium sized and small cars.
Alignment
of the timing of oil companies' corporation tax payments more closely
with petroleum revenue tax.
Anti-avoidance
measures include action against avoidance of capital gains tax, stamp
duty land tax and VAT; and against schemes using financial products, double
taxation relief and international arbitrage.
Extension
for a further three years of the 100 per cent VAT refund for renovation
of religious buildings and the same refund to the construction and repair
of memorials.
New threshold
for stamp duty from midnight tonight, doubling it to £120,000.
Inheritance
tax starting point raised from just over £260,000 to £275,000 from April
6 and, in successive years, £285,000 and then £300,000.
Extension
of tax exemption of ISAs until 2010.
In April
the personal income tax allowance raised in line with inflation from £4,745
to £4,895.
Payments
for children under the child tax credit will rise each year in line with
earnings and over the coming three years by a total of 13 per cent.
Payments
for poorer pensioners under the pensions tax credit will rise each year
in line with earnings and over the coming three years by a total of 13
per cent.
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