Clive and Mary are in their late 30s. They live together but are not married and have no children. Mary earns £37,000 a year as a senior banking executive. Clive earns £48,000 as a management consultant. Their mortgage partly consists of a £50,000 preferential bank loan at 5 per cent from the bank on a house bought three years ago. They carry a benefit-in-kind tax charge on this.
Clive's company car cost £22,000 but he does insufficient mileage to earn a reduction in the car benefit-in-kind charge, so he will continue to pay the full amount, and an extra 4p a litre for the super unleaded fuel he uses.
The couple's capital gains tax allowance will be halved from April, but so is the rate of tax at which they pay, and this is effective immediately.
The couple are keen wine-drinkers, often buying by the crate. They were relieved there was no increase in tax on wine, beer or spirits. However, Clive, who enjoys an after-dinner cigar, will now have to pay more for his habit.