MyFinances breaks down what the 2006 Budget means for you
Budget 2006 - impact
Thursday, 23 Mar 2006 10:30
Today Gordon Brown delivered his tenth and possibly last Budget as chancellor. MyFinances brings you a breakdown of how it will affect your bank balance.
In what was very much a campaign speech for his predicted future role as prime minister as well as an announcement of key financial measures, the chancellor announced relatively little in terms of major changes to UK taxes - but what he did say will have a hefty impact on millions of Britons.
The headline-grabbing measure was undoubtedly the increase in road tax for more polluting vehicles, but there were a number of other measures announced that will impact the finances of the Great British public.
Personal tax allowances were raised £140 to £5,035
Sin taxes: Nine pence more tax was put on a packet of cigarettes, four pence on a bottle of wine, one pence on a pint of beer. Cider, whisky and champagne were unaffected.
Stamp duty threshold was raised from £120,000 to £125,000.
The inheritance tax minimum threshold is up £10,000 to £285,000 from April, rising to £325,000 by 2009-10.
Road tax will be free for low pollution vehicles, and range from £40 to £210 depending on the petrol consumption of cars.
Child tax credit is to be raised 14 per cent over three years - making it worth as much as £88 a week by 2009, with child benefit raised to £17.45 a week from April 10th.
Children eligible for child trust funds would receive an extra £250 or £500, depending on their parent's income when the child is age seven, as well as their original child trust fund voucher.
Legislation for Real Estate Investment Trusts (REITs) would be published, creating a new form of fund for people to invest in.
Shared equity to be piloted/expanded to help first-time buyers. Shared equity schemes are to be piloted where investors have to pay just 25 per cent of the value of some properties.
Help to make homes more energy efficient, providing insulation for all pensioners and low-income families. Also help to get 250,000 more homes insulated. Micro-generation to cut fuel bills for 25,000 buildings.XXX