With Gordon Brown, Budget details are always contained in the Treasury 'Red Book' issued at the end of the Chancellor's speech. It is here that the real nitty gritty of the measures announced in this 11th Brown Budget can be found and the real impact they will have on individuals, companies, investors and the markets. One striking feature of the 2007 Budget is the amount of announcements which appear not to take place until future tax years, indicating that Brown wants to bind his successor. Nevertheless there were a handful of specific measures to come out of the Budget which will affect investors.

VCTs

One such change is the tightening of restrictions on Venture Capital Trusts, limiting the companies in which they invest to those raising no more than £2m per year and the employing no more than 50 people. These rules are effective from 6 April 2007 and so do not affect investments in the current year. VCT investors continue to enjoy tax relief of 30% if held for 5 years and gains and dividends can be taken free of tax. Nevertheless, the change is likely to affect next year's issues especially those specialising in AIM quoted companies who are likely to have more than 50 employees.

ISAs

From 2008, the annual self-select ISA allowance will rise to £7200, the first increase since ISAs were launched back in 1999. The increase will coincide with the abolition of the distinction between Mini and Maxi ISAs and for that matter PEPs, already announced last year. Cash ISAs will also increase from £3000 to £3600.

Property Unit Trusts

Authorised property open-ended funds were awarded the same tax efficient status as real estate investment trusts (REITs) launched in January. This means that neither product will be liable to the 20% corporation tax charge on rental income and stamp duty on exchange of units within the funds themselves. There will be no conversion charge on authorised funds enjoying this new tax benefit as was the case for property companies converting to REITs. All funds will need to convert to OEIC status.

Gilt Sales Cut

Long-dated and index-linked Gilt sales are to be cut to the tune of £4bn to £23.4bn and £15bn respectively.