A.W.BECKINSALE & CO.

SPRING BUDGET 1999

Gordon Brown announced that this would be a Budget for 'enterprise and fairness'. The first impressions of his speech were that he had found something to give to many good causes - pensioners, families with children and people on lower incomes. The tax increases which pay for these measures were introduced more quietly, and a considerable amount of detail (as usual) was left out of the speech and published only in the press releases which are issued when the Chancellor steps down.

One of the most striking features of this budget was the number of measures announced for introduction in April 2000, April 2001 and even April 2002.  We must now keep track of changes that were announced last year for introduction now, and others that were announced this year but will not take effect until later.

A cynic might suggest that the Chancellor will announce the good news each year until it is introduced, but only announce the bad news once, so far in advance that no-one thinks it is important!

SIGNIFICANT POINTS

• Introduction of 10% income tax band for 1999/2000
• Abolition of MIRAS from April 2000
• Abolition of married couple's allowance from April 2000; new children's Tax Credit from April 2001
• Increases in tax on company cars and private fuel
• No significant changes to Capital Gains Tax or Inheritance Tax
• Package of help for pensioners
• Shelving of plans for a General Anti-Avoidance Rule (GAAR)

AUTHORISED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES TO CARRY ON INVESTMENT BUSINESS