March 7 2001
Post Budget Overview 2001
Consultation on a simplified VAT regime for firms with
a turnover of up to £600,000.
Proposal to introduce a lower VAT rate for firms with
turnover from £54,000 to £100,000.
VAT threshold raised to £54,000 for small businesses.
Annual company accounts will become basis for calculating
tax (See comments).
Capital gains rate for employees in all types of companies
cut to 10p from 40p.
Move to allow pension funds to invest in venture capital.
Ensure there is a clearer duty on pension fund managers
to promote the interests of beneficiaries.
Extension of the enterprise management incentive scheme
so all employees can benefit from share options in the qualifying
Modernisation of the corporation tax system to meet the
needs of a more knowledge based economy.
The government will launch a consultation on the best
way to extend a research and development tax credit to larger
New tax credit in a bid to accelerate research on diseases
like Aids and Malaria.
First £1,880 earned will be taxed at 10%.
Six pence increase on a pack of 20 cigarettes.
Duty frozen on wine, beer and whisky.
Threshold for inheritance tax raised to £242,000.
For the next five years up to £7,000 a year of savings
can generate income and capital gains that will be tax free.
100% tax relief for investment in environmental technology.
Minimum wage to be increased to £4.10 per hour from £3.70.
Vehicle and fuel duty
Petrol tax cut by 2p per litre for unleaded petrol until
Duty on ultra low sulphur diesel to be cut by 3p.
Lead replacement petrol will be cut by 2p a litre.
All fuel duty changes to be in place by 1800 GMT on Wednesday.
Landfill tax up to £12 per tonne from £11.
Duty on road fuel gases will be frozen until 2004.
Vehicle excise duty abolished for all tractors.
70% all newly purchased cars will get a reduced licence
fee - applies to engines under 1.5 litres.
Education and health
In total £1bn to hospitals and £1bn to schools over
New £200m fund for extra teachers.
Education spending set to rise by 5.2% a year after inflation.
Headteachers of every primary school will receive £13,000
with larger schools receiving £63,000.
Headteachers of every secondary school will receive for
the smaller schools £68,000 and larger schools £115,000.
£135m fund for recruitment of front line staff for the
Between £500,000 and £1m for acute hospital trusts.
Maternity pay will be increased from £60 to £75 in
From June the child care tax credit will pay up to 70%
of child care costs - instead of £100 per week as at the moment.
Statutory obligation to maternity pay will be raised
from 18 weeks to 26 weeks.
Two weeks' paid paternity leave to be introduced.
Children's tax credit be paid at £10 per week.
Families receiving the higher children's credit and maternity
pay will up to £2,240 a year better off.
All lone parents on income support required to have regular
interviews from 2002.
Pensions and benefits
Winter allowance, the Christmas bonus and free TV licence
for the over 75s will be retained.
Seven and a half million pensioners will now pay no tax
or tax at the 10% rate.
Pension credit will be linked not just to prices but
to earnings every year and pensioners' tax allowances will be
linked to earnings from 2003.
£40m help for the 30,000 benefit claimants who have been
Inner city regeneration
£1bn package to speed up regeneration.
New community investment tax credit. 100% capital allowances
to renovate empty flats over shops.
Stamp duty abolished in designated areas to bring disused
properties back into use.
Regional development agencies to get new financial flexibility.
150% tax relief for cleaning up contaminated land.
Guaranteed minimum income for severely disabled people
on benefit of £142 a week.
£4bn extra will be made available for the government's
priorities each year.
£200m to fight war on drugs.
VAT change to ensure free entrance to museums.
Film industry tax incentive will be extended to 2005
at a cost of £50m next year.
VAT reduction on church repairs from 17% to 5%.
Most of this information was sourced from BBC news.
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