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The Budget rumour mill
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Alistair Darling has already announced some measures which will take affect from the new financial year, starting 6 April 2008. These include:
• An increase in the limit on individual savings accounts (Isas) from £7,000 to £7,200. Maxi and mini Isas will disappear: instead, consumers will be able to invest the full £7,200 in a stocks and shares Isa, or £3,600 in both a cash Isa and a stocks and shares Isa.
• A fall in the basic rate of income tax from 22p to 20p in the pound will also take place from 6 April. The 10% band will be scrapped.
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• A 20% increase in the annual personal tax allowance for pensioners. From 6 April those aged between 65 and 74 will be able to earn £9,030 a year tax-free, rising to £9,180 for those aged 75 and over.
• The upper earnings limit on which you pay 11% in national insurance will rise to £40,040 a year. Higher and middle income earners will pay more in NI as a result.
Don't forget to check our special Budget section from 12.30pm today - to follow the Budget live.
