Summary

This year’s Pre-Budget Report was generally seen as posing major difficulties for the Chancellor. The predictions in his March 2005 Budget for growth and borrowing have proved seriously wrong, as many commentators predicted would be the case. In typical style, Gordon Brown swept aside such issues and announced a wide range of measures, including a major U-turn on the treatment of residential property in pension plans.

The Pre-Budget Report includes a further raft of measures against tax avoidance, broadening the scope of the rules introduced by the Finance Act 2004 that require the disclosure of schemes.