24 March 2000

Rates & allowances

CHANGES in income tax rates and thresholds have increased broadly in line with inflation.

Other changes from April 2000, already announced, are the reduction in the basic tax rate by 1% to 22%. But there was no sign, as some had predicted, of further cuts to follow. The married couples allowance has also been abolished. The additional personal allowance has also gone, one year before the introduction of the childrens tax credit.

The introduction of the corporation tax 10% band for profits up to £10,000, with a sliding tax rate up to 20% for profits of £50,000, from Apr 1, 2000 was announced last year.

lThere was small rise in the nil rate band of inheritance tax, up by £3000 to £234,000.