Tax changes to benefit workers earning more than £15K

Posted on 7 April 2008

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Changes to the national tax scheme covering income tax, national insurance, capital gains tax and individual savings accounts will benefit workers who make more than £15,000 per annum.

The changes that came into effect yesterday (Sunday) will also mean that those who earn between £34,840 and £40,040 will face higher taxes as the national insurance (NI) rate increases from one per cent to 11 per cent for this income bracket.

Those earning less than £15,000 will also see higher taxes however, as those who earn more than this amount will by and large be better off as these workers gain more than they lose from the tax changes and the raising of the higher rate tax threshold, despite a higher NI charge.

Among the sector specific tax changes include a decrease of the capital gains tax (CGT) from 40 per cent to a flat rate of 18 per cent, while entrepreneurs holding business assets could see an 80 per cent increase in their CGT from ten per cent to 18 per cent.

Category: Tax & Legislation News

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