12th MARCH 2008 BUDGET PROPOSALS
AND CHANGES FOR 2008/2009 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

11.1 Personal Pensions

From 6th April 2008, the maximum level of earnings for which pension provision may be made with tax relief increases from £225,000 to £235,000.

The lifetime allowance for total tax-approved pension savings increases from £1,600,000 in 2007/2008 to £1,650,000 in 2008/2009.

11.2 Stamp Duty Land Tax

For residential property transactions the starting point remains at £125,000 for the 1% rate.  The 3% and 4% rates and thresholds are unchanged at £250,000 and £500,000 respectively.

11.3 Enterprise Investment Scheme (EIS)

The annual investment limit is increased from £400,000 to £500,000.

11.4 Venture Capital Trusts (VCTs)

The annual investment limit remains at £200,000 and the income tax relief remains at 30%.  VCT investors must hold their shares for a minimum period of 5 years.

Shipbuilding, coal production and steel production will be excluded from EIS and VCT investments from 6th April 2008.

11.5 ISAs

From 6th April 2008 the maximum limit is increased from £7,000 to £7,200, with the cash limit increasing from £3,000 to £3,600.

11.6 Employer Supported Childcare

Employees can continue to receive up to £55 a week with an approved childcarer, free of tax and National Insurance.

11.7 Pensioners

The winter fuel allowance receives a one off increase from £200 to £250 per household for those aged over 60 and from £300 to £400 for those aged over 80.

Free off-peak local area bus travel for those aged over 60 in England was available from April 2006.  This will be extended nationally across England from April 2008.

11.8 Non UK Domiciles

From 6th April 2008, for adults aged 18 and over, who are non UK domiciled, whilst being UK resident for more than 7 out of the past 10 tax years, must pay a £30,000 charge if the remittance basis is claimed. This is not required if there are unremitted income and gains of up to £2,000.