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Budget 2005 holds no surprises for contractors

As predicted their were no surprises in the Budget for contractors. Corporation tax remained at the same levels, and personal taxation thresholds will rise in line with inflation.

Here are some of the key points:

  • Stamp duty thresholds doubled to £120,000.
  • Inheritance tax currently starts being paid on estates worth £260,000 - that will rise to £275,000 this year, £285,000 next year and then to £300,000.
  • Duty up 1p on a pint of beer and 4p on a bottle of wine, but frozen on cider, sparkling wine and spirits.
  • Tax breaks on ISAs extended until 2010.
  • Personal income tax allowance to be raised in line with inflation.
  • Child benefit to rise to a maximum of £63 for the first child and £111 for two children.

More info: BBC - Budget Key Points

Published: Wednesday, 16 March 2005

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