Brown targets air passengers to bear PBR burden

Brown targets air passengers to bear PBR burden

Brown's final act doubles air passenger duty, cracks down on composite companies and closes tax loopholes

Airline passengers bore the brunt of what is expected to be Gordon Brown’s
last pre-Budget report.

A measure doubling the air passenger duty rate will raise £1bn a year from
next year, Treasury documents said.

The pre-Budget report as a whole will raise tax by £2bn a year from next
year, with the rest coming from a crackdown on composite companies and closing
tax loopholes.
The chancellor also admitted that carousel fraud was on the rise, costing the UK
£2bn to £3bn a year.

Corporation tax will not, however, hit £50bn in 2006-7, as predicted last
year. Predictions for 2006-7 and 2007-8 were £48bn and £53.8bn respectively.

Sue Bonney, KPMG’s UK head of tax, said: ‘There was scant evidence of a
strategic shift and no “big picture” presented. Business’s tax ‘bugbears’ are
the complexity of the system, general unpredictability which hinders business
planning and, increasingly, the overall rates imposed. None of these were really
addressed.’

Related Articles

Paul Morton, Tax Director, Office of Tax Simplification

Administration Paul Morton, Tax Director, Office of Tax Simplification

6m Emma Smith, Managing Editor
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

8m Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

10m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

10m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

2y Fraser Simpson, Reporter