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This page is designed to provide a guide to some of the changes the Chancellor has announced for future years. It should be borne in mind that a these rates may be changed at any time ahead of their planned introduction and should be used as an indication of intent only.
Individual Savings Accounts (ISAs)
Lifetime extended from 2009 to "permanent".
Changes from 6
April 2008:
The mini/maxi distinction within ISAs will be
removed.
Individuals will be able to hold these components
with either the same or different providers.
The maximum amount which can be invested
into a cash ISA will be increased to £3,600.
The maximum amount which can be
invested into a stocks and shares ISA will be £7,200, subject to an overall limit of £7,200
placed into both ISAs in a tax year.
Additional changes are anticipated:
Cash
components of ISAs from previous years will
be able to be transferred into the stocks
and shares component without affecting their
annual investment limit.
Personal Equity Plans will be brought within
the ISA wrapper.
Child Trust Fund accounts will be able to
rollover into ISAs when they start to mature
from 2020 onwards.
Personal taxation rates
The 2008/9 tax year promises very significant change in the tax system with alignment of tax and National Insurance Bands to be achieved over a period.
The 10% starting rate band will be abolished.
The basic rate of tax (currently 22%) will be reduced to 20%.
Higher rate will continue at 40%.
National Insurance
From 2008/9 there will be substantial increases in the current ceilings with alignment with personal taxation thresholds to be achieved in due course.
Inheritance Tax threshold
2008/2009 £312,000
2009/2010 £325,000
The above information is correct to the best of our knowledge but is provided as a guide only.
