Peter Vaines examines the Pre-Budget Report, including elements that were conspicuous by their absence
The chancellor’s Pre-Budget Report did not really contain many surprises—we all knew he was going to get the bankers—we just did not know quite how. More of that in a moment.
It is quite interesting to see what he did not do:
i) He did not increase the rate of capital gains tax beyond the existing 18% level.
ii) He did not increase the corporation tax small companies rate as planned, so it remains at 21%—the main rate remains at 28%.
iii) He did not increase National Insurance Contributions (NIC) any more for the moment—although they are still planned to go up 0.5% next year, and again in 2011.
iv) He did not increase VAT beyond the 17.5% he had already proposed.
v) He will not be putting up personal allowances or the basic rate band next year.
vi) He did not alter the earlier proposal of a 50% rate on earnings over £150,000.
However, what he did do is to fiddle with inheritance tax (expected saving: too small
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