Budget 2005 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Pensioners Savings Trusts Capital Gains Tax Stamp Duty Land Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Business Tax Film relief Accelerated tax relief is available for the capital costs of producing or acquiring a low-budget (below £15m) British film. The current scheme of relief was due to expire on 1 July 2005, but it has been extended in the Budget to 31 March 2006 (with the possibility of a later date being substituted after European clearance has been obtained for 'state aid' for the film industry). The relief will be available where the first day of principal photography is before 1 April 2006 and the film is completed before 1 January 2007. On the other hand, the Revenue are clamping down on a number of tax avoidance schemes which exploited this relief - in their opinion unfairly - from 2 December 2004. Disadvantaged areas It is intended to bring in a new relief for the costs of renovating business property which has been empty for a year in designated 'disadvantaged areas' . This requires European approval for 'state aid' to the industries affected, and will not be introduced until that approval is obtained. The capital costs of such renovations would normally not be relieved immediately, but the intention is that a 100% capital allowance should be available. This new relief will to some extent offset the withdrawal of the SDLT exemption for acquisition of property in disadvantaged areas. Landlords The 2004 Budget introduced a relief for income tax-paying landlords who carry out works to improve the energy-efficiency of rental properties. Up to £1,500 can be relieved per property, if spent before 6 April 2009. The rules are amended from 7 April 2005 to allow solid wall insulation as well as loft insulation and cavity wall insulation.