Gordon Brown's Pre Budget Statement made the headlines for the announcements on old age pensions and transport issues. Behind the headlines, however, were other proposals. Some of these are subject to consultation but others will be introduced in next year's budget. The main points are:

ISA Investments The current annual limit of £7,000 (including £3,000 in cash), itself an extension of the first year's limit, is now to be extended until 2006.

Employee Share Options The current limit of 15 employees participating in Enterprise Management Incentive schemes is to be replaced by a limit based on the total value of shares (possibly up to £2.5m). However, the limit of £100,000 per employee is likely to remain. There is also some relief for National Insurance Contributions on unapproved share-option schemes granted between April 6, 1999, and May 19, 2000, and such schemes should be reviewed.

Value Added Tax The threshold for the Cash Accounting Scheme and for Annual Returns is to be increased to £600,000 with effect from April 2001. This should relieve the administrative burden for small business that previously didn't qualify. There is also to be consultation on the rationalisation of the payment system under Annual Accounting.

Green Transport The business mileage rate for the company bicycle is increased to 20p and VAT on the purchase of cycle helmets is to be abolished. The Authorised Mileage Rate is to be reformed to benefit smaller, more efficient cars and consultation is to take place with a view to moving to a single mileage rate from 2002. A company bus now qualifies for tax relief if it has at least nine seats.

Business Tax Issues Consultation is invited on:

*Withdrawal of withholding tax on certain interest and royalties

*Tax on intellectual property, goodwill and other intangibles

*Tax on gains on substantial shareholdings sold by companies

*Tax of Limited Liability Partnerships

*Tax of corporate debt, financial instruments and Forex.

Urban Regeneration Stamp duty is to be abolished on property transactions in disadvantaged areas although these areas have not, as yet, been defined. Tax credits are to be introduced for clearing up contaminated land, 100 per cent Capital Allowances are to be introduced for creating flats over shops and VAT on costs of converting property to residential use is cut to five per cent. All of these are to be introduced in next year's Budget.

Several proposals and changes announced in the Budget in March do not come into effect until next April, such as the Children's Tax credit and changes in National Insurance rates and thresholds. Changes in the taxation of company cars do not come into effect until April 2002 and employers would be advised to review their company car policies before this. They particularly hit the high business mileage user.