We've outlined some key details and summarised yesterday's Summer Budget, to help you separate the wheat from the chaff.
- Major cuts to working age welfare benefits, in part counterbalanced by a new compulsory National Living Wage for those aged 25 and over, starting at £7.20 an hour in 2016/17.
- A further rise of £200 in the personal allowance to £11,000 for 2016/17 and £11,200 for the following tax year.
- An overhaul of the tax treatment of dividends which will increase tax bills for the very wealthy, but reduce or eliminate them for many other investors from next tax year.
- Confirmation that the new personal savings allowance, announced in March’s Budget but not legislated for, will be introduced from April 2016.
- The gradual reduction to basic rate of the tax relief on finance costs for individual buy-to-let investors by 2021/22 and the replacement of the 10% wear and tear allowance.
- A new round of restrictions on tax relief for pension contributions.
- The introduction of a new transferable main residence IHT nil rate band, starting at £100,000 in 2017/18 and rising to £175,000 by 2020/21.
- Tougher rules on non-UK domiciled individuals, including an end to non-domiciled tax status once the period of UK residence exceeds 15 of the last 20 years.
- A reduction in the rate of corporation tax to 19% in financial year 2017 and 18% three years later.
- A raft of yet more strengthened anti-avoidance and evasion measures.
The 2015 Summer Budget update was produced by Technical Connection if you require personal advice on how the budget effects you we strongly recommend you seek Independent Financial or Tax Advice.
The views and opinions contained herein are third party and may not necessarily represent views expressed or reflected by Willis Owen.