Robin Williamson Technical Director Low Incomes Tax Reform Group gives us a LITRG view of the 2007 Budget
It was not long after the Chancellor sat down that the Opposition parties and other commentators spotted the catch. For those who may have been tempted to take the reduction of the basic rate of income tax at its face value the counter-blow was the removal of the 10% starting rate from earned income and pensions. As a result from April 2008 when these measures take effect people on low incomes will be worse off from a purely tax perspective — except in the unlikely event that the basic personal allowance is increased substantially in 2008–09.
However countervailing tax credit changes will outweigh the tax disadvantages for those...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Robin Williamson Technical Director Low Incomes Tax Reform Group gives us a LITRG view of the 2007 Budget
It was not long after the Chancellor sat down that the Opposition parties and other commentators spotted the catch. For those who may have been tempted to take the reduction of the basic rate of income tax at its face value the counter-blow was the removal of the 10% starting rate from earned income and pensions. As a result from April 2008 when these measures take effect people on low incomes will be worse off from a purely tax perspective — except in the unlikely event that the basic personal allowance is increased substantially in 2008–09.
However countervailing tax credit changes will outweigh the tax disadvantages for those...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
90a1d87b-c1b5-43c3-a720-cd324830adee.tmb-editorspic.jpg?sfvrsn=1b2d0a7e_1)
