PBR05: Taxes to rise by more than £2bn
PBR will see tax revenues rise by £2.5bn once the effect of announcements work through
Government revenues will rise by £2.5bn once the effect of today’s
announcements in the PBR work through, according to Chris Sanger of Ernst &
Young.
The chancellor’s moves will see an extra £2bn collected from oil companies in
2006.7 and £2.2bn thereafter.
Measures to crack down on tax avoidance will see the chancellor receive an
extra £300m through the capital loss provisions, £530m from small business
changes (which mean a return to the previous rules) and £120m from changes to
corporate intangibles.
This year the government will pay out a modest amount more due to the delayed
effect of the changes, but taxes will rise by £2.54bn by 2008/9, said Sanger.