News



Budget 08 July 2015 - Summary

08 - 07 - 2015

Following 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

 

  • Not mentioned!

 

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



 

 

 

 

 

Foremans LLP Umberlla
Foremans LLP