Winners and Losers podcast

Winners

Savers

The Saving Gateway scheme, aimed at low-earners, is to be rolled out nationwide. The plan will see the Government match the amount savers put away, to a maximum value of £25 per month.

Rose-tinted specs fail to offer hope

The obvious justification for Mr Darling’s relatively upbeat scenario is that the outlook is fraught with uncertainty

Background

• Darling's first Budget: the main points

• The Chancellor's speech in full

• Darlings first Budget: the reaction

• Chancellor hits the home budget as his debts soar

• Need to know: Budget 2008

The Chancellor delivers a modest Budget

As so often is the case, virtue, in terms of improving public finances, is not now, but at least a year away

Multimedia

• Video sketch: Matthew Parris and Ann Treneman

• Eco-worrier: should we be pleased?

• Green Central: round-up of the green Budget measures

Related Links

• Beer tax will not stop binge drinking

• Alistair Darling hits back at Budget critics

Multimedia

• The winners and losers

Parents

Child benefit payments for a first child will increase to £20 a week from April 2009, giving a total amount of £21,169 received before a child’s 16th birthday. Child tax credit will increase by £50 a year.

Pensioners

The winter fuel allowance will rise from £200 to £250 for the over-60s, and from £300 to £400 for those over the age of 80.

Entrepreneurs

Only 10 per cent tax on £1 million of gains when they sell their business; rather than 18 per cent Capital Gains Tax.

Key workers

Shared ownership schemes will see constraints on borrowing relaxed for key workers, including teachers and nurses.

Those in shared-ownership schemes with less than 80 per cent ownership will not face stamp duty

Middle income earners

Basic rate of tax down 2p to 20 per cent.

Investors

The tax relief threshold for investments in the Enterprise Investment Scheme will rise from £400,000 to £500,000.

Buy-to-let investors will pay a flat rate of 18 per cent capital gains tax on their portfolio.

Losers

Non-doms

Foreigners who have lived in Britain for more than seven years but are domiciled abroad will pay a £30,000 annual charge on their income. They will no longer be able to use offshore interest-only mortgages to buy UK property.

Smokers and Drinkers

The duty on tobacco and alcohol will rise six per cent above inflation. A packet of 20 cigarettes now costs 11p more than it did yesterday. The Chancellor added 55p to spirits, 14p to a bottle of wine and 4p to a pint of beer.

Smart investors

Clampdown on loss relief schemes.

Low earners

Abolishing of 10 per cent tax bracket means some will pay more tax.

Gas guzzlers

New taxes on cars that are particularly polluting. All drivers — except those who own vehicles with the lowest carbon emissions — will be penalised, despite a delay in a 2p increase on fuel duty until October. From April 2009, road tax will increase for most vehicles, except for the least polluting vehicles with emissions below 120g/km. There will be a £5 increase for vehicles in bands C to F, while a £100 increase of £100 will apply to vehicles that were registered from 23 March 2003 in band G. From 2010, the lowest-polluting new cars will pay no road tax in the first year, but the most-polluting will pay £950.

Employee share owners

As well as business owners who sell their firm for more than £1 million, capital gains tax will rise from 10 per cent to 18 per cent.

First-time buyers

No relief on stamp duty.

Incapacity claimants

Must take a test after April 2010 to demonstrate that they are unfit for work. The Government wants to cut the number of claimants from 2.6 million now to 1 million by 2015.

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