Bygone budgets: March 1986

Chancellor: Nigel Lawson
Government: Conservative

guardian.co.uk, Wednesday March 3 1999 15.47 GMT

Chancellor Nigel Lawson began a process of tax-cutting that would continue for several years afterwards. His theme was "popular capitalism" and he stated his desire to turn a nation of homeowners into a national of shareholders as well. Labour leader Neil Kinnock described it as a "bits and pieces budget" with a promise of "jam tomorrow".

Income tax
Basic rate cut from 30% to 29%.

Capital transfer tax
Radically reformed and renamed Inheritance tax. Tax on lifetime gifts abolished.

Tax relief
For individuals and companies making donations to charity.

Personal Equity Plans
Peps with tax exemptions introduced to encourage small investors to put up to £2,400 a year into equities.

Duties
20 cigarettes up 11p, petrol duty increased, adding 7.5p to the price of a gallon of petrol.