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Last Updated: Wednesday, 22 March 2006, 17:55 GMT
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.



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