Budget impact breakdown

Gordon Brown is the chancellor who loves detail, not sweeping changes. Rare are the Budgets where he opts for dramatic changes, like adding 1p to National Insurance.

Instead he prefers to fine tune the tax system - although that makes it a challenge to understand how the Budget will affect individual households.

In the table below we attempt to break down the impact of Budget 2006 on typical families and income groups - although it cannot measure the effect of "sin taxes" on cigarettes and beer, and the green taxes on heavily polluting vehicles.

BUDGET IMPACT BREAKDOWN
	Annual income
Household type	£15,000	£35,000	£50,000+
Single no children	£53	-£25	£163
Single 1 child	£238	-£25	£163
Single 2 children	£329	-£9	£178
Single 65-74	£138	£294	£294
Single 74+	£141	£294	£294
Married 65-74	£276	£343	£343
Couple both working, 1 child	£315	£130	£130
Couple both working, 2 children	£406	£146	£146
Couple 1 working no children	£163	-£25	£163
Couple 1 working 1 child	£262	-£1	£186
Couple 1 working 2 children	£352	£14	£202
Married couple 75 and over	£278	£343	£343
Couple both working no children	£217	£107	£107
£x better off a year  £x worse off a year
The tax calculations have been provided by KPMG LLP (UK). They summarise the Budget proposals and other tax changes, which may be amended significantly before enactment. The table is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining liability to tax or determining investment strategy in specific circumstances. Although KPMG endeavours to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.