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Budget 2006

Gordon Brown delivered his tenth budget as Chancellor on Wednesday the 22nd of March 2006. This was very much an electioneering budget for Gordon Brown with little substance. There were, however, a few hidden surprises.

There was more funding for schools, special initiatives related to the Olympic Games and funds to support victims of terror attacks. There were the usual increases in duty rates and tweaks to the tax rates but nothing to really address any of the big concerns, the Child Tax Credit scheme will remain and the increase in the Inheritance Tax nil rate band does not really tackle concerns over the effect of rising house prices.

The Budget coincided with the release of Lord Carter's review of HM Revenue and Custom's online filing services, as a result of which the big news is that the self-assessment return filing deadline is likely to be moved to 30th September for paper returns and 30th November for returns filed online from 2008 – leaving a much shorter window between the end of the tax year and the filing deadline.

Pension Changes to cost Taxpayers

Recent changes to the Pensions Scheme announced by the Chancellor in the Pre Budget Speech are set to cost Taxpayers in the Cambridgeshire area in excess of £120 million in potential tax savings.

In his pre-budget speech, the Chancellor announced that Self directed pension schemes such as the small self administered schemes (SAS) and self invested personal pensions (SIPP) will be prevented from holding directly owned residential property.

This has caused disappointment amongst a number of Cambridgeshire residents. With a population in excess of a 100,000 and a significant number of this population in the higher tax bracket with buy-to-let mortgage properties; these changes in the legislation will cost Taxpayers in excess of £120 million in potential tax savings.