Budget 2008


Personal Income Tax

Tax Credits

National Insurance Contributions


Savings & Investments

Capital Gains Tax

Stamp Duty Land Tax

Inheritance Tax

Corporation Tax

Business Tax

Value Added Tax

Other Measures

Tax Tables

National Insurance

Inheritance Tax


The nil rate band for transfers after 5 April 2008 rises, as previously announced, from £300,000 to £312,000. Rates of tax remain unchanged at 40% (death transfers) and 20% (lifetime chargeable transfers).

Transfer of nil rate band

The Budget confirms the announcement from the October Pre-Budget Report that the nil rate band will be effectively transferable between husband and wife. Where one spouse has died with a chargeable estate for IHT of less than the nil rate band at the time, the unused proportion will be added to the nil rate band of the surviving spouse on the second death. This relief applies where the survivor dies on or after 9 October 2007, whenever the first spouse died.

This means that one of the main IHT planning devices of the past 20 years - the nil rate band discretionary will trust - may no longer be required.

Tax Tip
It's a good idea to review your will regularly - this change is just another good reason to do so.

Pension funds

When the pension rules changed in April 2006, it appeared to be possible to
pass on assets in a tax-efficient way by using a pension fund. This idea has been effectively closed down by anti-avoidance rules - it is possible but there will be
tax charges.


Website designed by

budget 2014 | budget 2013 | budget 2012 | budget 2011 |
budget 2009| budget 2008 | budget 2007 | budget 2006 | budget 2005 | budget 2004 |
budget 2003 | accountants | about us | services | testimonials | links | map | contact us |
Regulated by the Association of Chartered Certified Accountants