Budget 2004
Introduction
Personal Income Tax
Tax Credits
National Insurance Contributions
Employees
Pensioners
Savings
Trusts
Capital Gains Tax
Inheritance Tax
Stamp Duty / Stamp Duty Land Tax
Corporation Tax
Business Tax
Value Added Tax
Other Measures
Tax Tables
National Insurance
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Budget Summary
Introduction
A Chancellor approaching an election does not want
to raise taxes or cut public spending. A year ago, Gordon Brown
suggested that he would not have to do either, because he made
predictions of economic growth - which would keep tax revenues
buoyant - which some regarded as over-optimistic. It was rumoured
that Gordon Brown had abandoned Prudence, his constant companion
of earlier Budgets. However, he closed this year's speech by
invoking her again - "Prudence with a Purpose" remains
his motto. Even so, he spent some time making it clear that
the borrowing required by this year's measures was within his
"golden rule", and the books would balance within
the economic cycle.
At first sight, there are few major changes that will affect
most people - Mr Brown seems to be tinkering with details, rather
than rewriting large areas of the tax system. We should be thankful
for that. Even so, there were still about 80 press releases
issued by the Revenue and Customs giving details of the tinkering.
This booklet summarises the main changes and outlines their
likely effect on the average taxpayer.
Significant
points
- Income tax allowances increased in line with inflation
- New cap on approved pension schemes to apply from April
2006
- Increases in tax rates for trusts
- Closure of tax avoidance schemes for CGT
- New charge on "pre-owned assets" from April
2005
- New minimum tax charge for small companies paying dividends
- Inland Revenue and Customs & Excise to merge
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