Chancellor Alistair Darling presented his second Pre-Budget Report on Monday 24 November 2008. As expected Mr Darling concentrated on measures to protect and support businesses and individuals in these ‘extraordinary, challenging times for the global economy’.

This summary concentrates on the tax measures which are being
introduced. The main tax proposals are:
• reduction in standard rate of VAT from 1 December 2008. The VAT rate will be reduced from 17.5% to 15% from Monday 1 December 2008
• changes to personal allowances including prospective reduction in the basic personal allowances for individuals with income above £100,000
• a prospective new income tax rate of 45% for individuals earning £150,000
• deferral of the planned increase in small company corporation tax rate
• new loss carry back provisions
• details of changes to capital allowances for cars.

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