Budget 08 July 2015 - Summary08 - 07 - 2015Following on from the budget, please find below a summary of the main points we believe may affect our clients.
Personal Taxation
- Personal Tax Allowance 2016/17 - £11,000;
- 40pence Tax Threshold 2016/17 - £43,000;
- Inheritance Tax Threshold 2017/18 - £1,000,000;
- Dividend tax credit to be replaced with a new tax
free allowance of £5,000 on dividend income for 2016/17;
- Rates of dividend tax to be set at 7.5%, 32.5% and
38.1% for 2016/17;
- New national living wage for workers aged over 25
years from April 2016 £7.20 rising to £9.00 by 2020;
- Permanent non-domiciled status to be abolished. Anyone
who has lived in the UK
for 15 of the past 20 years will pay the same taxes as other UK
citizens.
Welfare and Pensions
- Tax Credits and Universal Credit restricted to 2
children for those born after April 2017;
- Income threshold for tax credits to be reduced from
£6,420 to £3,850;
- Disability benefits will NOT be taxed or means
tested;
- 18-21 year olds will NOT automatically be entitled
to housing benefit;
- Working age benefits to be frozen for 4 years;
- Rents in social housing sector will reduce by 1% pa
for next 4 years;
- Higher income household in social housing will be
required to pay rent at market rate;
- Annual household benefit cap will be reduced to
£23,000 in London and £20,000 elsewhere in UK;
- Recipients of the Victoria Cross and George Cross
will see annual pension;
- Annuities rise from £2,129 to £10,000.
Fuel and Vehicles
- No rise in fuel duty;
- New vehicle excise bands for new cars to be
introduced 2017/18.
Alcohol and Tobacco
Business
- Corporation Tax to be cut to 19% in 2017 and to 18%
by 2020;
- Increase in insurance premium tax to 9% in November
2015;
- National Insurance Employment Allowance for small
employers to be increased to £3,000 2016/17;
- Annual Investment Allowance to be £200,000 from
January 2016.
Education
- 2016/17 Student maintenance grant to be replaced by
loan;
- Student maintenance loan to be paid back when
people earn more than £21,000pa;
- Student Maintenance Loan increased to £8,200.
Housing
- Mortgage interest relief for buy- to-let homebuyers
to be restricted to basic rate tax;
- Rent-a-room relief scheme to rise to £7,500.
Other
- Sunday
trading laws are under consultation.
The
above is meant as an indication of the main points included in the July 2015
budget. The information should not be relied upon as taxation advice.
Please
contact us at Foremans LLP on 01244 625 500 for a free no obligation discussion
on any of the changes above