Summary of Budget 2008 changes
Please note that the details on this page reflect the contents of the 2008 Budget and its associated paperwork. Some points may therefore have been superseded by subsequent events.
Below you will find a summary of the key areas covered in the Budget 2008. You can find out about the topics in our Budget brochure.
Personal and trust tax
- Modernising the personal tax system
- Gift aid: Transitional relief
- Remittance basis and foreign dividend income
- Taxation of personal dividends
- Income of beneficiaries under settlor interested trusts
- Capital gains tax reform: Change of tax rate
- Capital gains tax reform: Entrepreneurs' Relief
- Capital gains tax valuations
- Inheritance tax: Transitional serial interests
- The residence test and day counting rules
- Avoidance of income tax using manufactured payments
Find out more about personal and trust tax Budget 2008 changes
Residence and domicile
- General
- Loss of personal allowances and entitlement to the automatic remittance basis
- The £30,000 remittance basis charge
- Extended remittance definition
- Mixed funds
- Capital gains tax losses
- Income falling out of charge when switching from a claim for the remittance basis to being taxed on the arising basis
- Ceased source
- Alienation
- Offshore mortgages
- Extension of anti-avoidance provisions
Find out more about residence and domicile Budget 2008 changes
Business
- Income ‘shifting'
- Restriction on trade loss relief for individuals
- Trading stock
- Simplification of associated companies rules
- Capital allowances: Industrial Buildings Allowances (IBAs), Enterprise Zone Allowances (EZAs) and Agricultural Buildings Allowances (ABAs)
- Capital allowances: Plant and machinery Annual Investment Allowance
- Capital allowances: Plant and machinery
- Capital allowances: 100% first-year capital allowances for ‘green' assets
- Capital allowances: Introduction of first-year tax credits
- Research & Development and Vaccine Research Relief schemes
- Offshore funds: New tax regime
- Income tax payments by Unauthorised Unit Trust
- Corporate intangible asset regime: Anti-avoidance
- Capital allowance buying and acceleration: Anti-avoidance
- Anti-avoidance: Specific corporate provisions
- Controlled Foreign Companies (CFCs)
- Financial products avoidance: Disguised interest
- Financial products avoidance: Transferring rights to lease rentals for companies
- Double Taxation Treaty abuse
- Investment Manager Exemption (IME)
- Collection of National Insurance Contributions (NIC) from the self employed
Find out more about Budget 2008 changes affecting businesses
Employers' tax
- Enterprise Management Incentives (EMI) schemes
- Employment-related securities: Deductible amounts
- Changes for employment-related securities: Residence and domicile
- Company car benefit tax
- Employer-provided vans: Fuel benefit rules
Find out more about employer's tax
VAT and other indirect taxes
- VAT registration limits
- Withdrawal of staff hire concession
- Exemption for fund management
- Correction of VAT return errors
- Three-year cap - transitional period announced
- Election to waive exemption (‘option to tax')
- Fuel scale charges
- Stamp Duty Land Tax (SDLT): Relief for new zero-carbon flats
- SDLT: Anti-avoidance measures
- SDLT: Anti-avoidance legislation affecting partnerships
- SDLT: Notification threshold for land transactions and rate thresholds for leasehold property
- SDLT: Expensive residential property
- Stamp Duty: Alternative finance and loan finance exemption
- Reduction of Stamp Duty administrative burden
- Continued help to stop smoking
Find out more about VAT and other indirect taxes
Pensions and investments
- Individual Savings Accounts: Northern Rock
- Overseas pension schemes
- Pension savings and inheritance tax
- Lifetime allowance test
- Venture capital schemes
- Funds of alternative investment funds (FAIFs) and property investment funds (PAIFs)
Find out more about pensions and investment Budget changes
Miscellaneous
- Tax appeals against decisions made by HMRC
- Compliance checks
- Penalties for incorrect returns and failure to notify a taxable activity
- Payments, repayments and debts
- Waiving interest and surcharges for those affected by national disasters
- Power to give statutory effect to existing Extra Statutory Concessions
