Budget 2004 - March 2004
In his eighth Budget, the Chancellor Gordon Brown delivered some surprises but, as usual, confirmed most of the changes already announced over the past few months. Many rates, including income tax and national insurance contributions, stay the same and allowances increase by statutory indexation. The single universal regime for pension arrangements has been delayed until April 2006. The changes include increases in first year capital allowances for small businesses, although the 100% allowance for expenditure on computers has not been extended, a 19% minimum corporation tax rate on distributed profits of small companies, and the tax rate for trusts increasing from 34% to 40%. There are also measures to clarify and amend stamp duty and tax proposals, modernise the taxation of trusts and there are several anti-avoidance provisions. The Chancellor also announced that the Inland Revenue and Customs & Excise will merge.
To see more articles, see these pages: