The measures announced in Summer Budget 2015 include:
The corporation tax rate will be cut to 19% in 2017 and 18% in 2020. Payment dates for large companies will be brought forward.
NATIONAL LIVING WAGE
A compulsory wage for over 25s of £7.20 an hour will be introduced in 2016, rising to over £9 in 2020.
Dividend tax credit will be replaced by an annual tax-free allowance of £5,000. Tax rates of 7.5% and 32.5% will be set for basic rate and higher rate taxpayers on income from dividends.
ANNUAL INVESTMENT ALLOWANCE
The allowance will be £200,000 from 1 January 2016
The employment allowance will rise from £2,000 to £3,000 from April 2016.
An apprenticeship levy will be introduced for large companies to help fund training.
The personal allowance will rise from £10,600 to £11,000 from April 2016. The higher rate threshold will increase to £43,000 from April 2016.
A £175,000 transferable threshold for residential property passed to children and grandchildren will be phased in from 2017.
Mortgage interest rate relief on buy-to-let property will be restricted to the basic rate of income tax. This will be phased in over 4 years starting in April 2017.
Rent-a-room relief will rise to £7,500 a year from April 2016.
The permanent non-domicile tax status will be abolished from April 2017.
Pension contributions tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 a year from April 2016.
Working parents in England with children aged 3 or 4 will receive up to 30 hours of free childcare from September 2017.
A new roads fund will be created to ensure continued investment in the road network.
STUDENT MAINTENANCE GRANTS
Maintenance grants will be replaced by loans of up to £8,200 for new students from the 2016/17 academic year.
TV LICENCE FEES
The BBC will be responsible for funding the over-75s licence fee concession from April 2018.
£30 million in additional funding will be provided to Transport for the North over 3 years.
Bank levy will be reduced over 6 years and replaced with an 8% surcharge on banking sector proits from 1 January 2016.
New vehicle excise duties will be introduced in 2017 and fuel duty will remain frozen.
Contact us today to discuss the Summer Budget.