The first Conservative Budget since 1996
We’ve been waiting for this Budget with bated breath since the Conservatives won the election in May – and the Chancellor delivered a lot in his “big Budget” of Summer 2015.
In many ways, Mr Osborne’s announcements this time around are more important than in March, as this Budget sets out many of the measures the Conservatives have wanted to put in place for some time.
How might this Budget affect you?
- Dividend tax credit will be abolished from April 2016 and there will be a new dividend tax allowance of £5,000 a year. Above that level the tax rates on dividends will rise by 7.5%.
- For private landlords the wear and tear allowance will be replaced by a new relief allowing the actual costs of replacing furnishings from April 2016; and individual landlords’ tax relief for finance costs will be restricted to basic rate tax – to be phased in over four years from April 2017.
- The national insurance contribution (NIC) employment allowance of £2,000 will rise to £3,000 from April 2016.
- Non-UK domiciled individuals who have been UK resident for at least 15 of the last 20 years will be treated as UK domiciled for tax, including inheritance tax (IHT), from April 2017.
- There will be an extra transferable IHT nil-rate band for main residences passed on death to direct descendants, starting at £100,000 in 2017/18 and rising to £175,000 in 2020/21.
- The corporation tax rate will be reduced from 20% to 19% in the financial year 2017, and 18% in 2020.
- The annual investment allowance available to businesses will be reduced to £200,000 from 1 January 2016.
We have a full budget report available: click here to receive your free copy.
Should you have any queries on any of these changes then do please get in touch with one of the team by calling the office on 01423 855680 or email.