Farley And Partners

AT A GLANCE

The measures announced in Summer Budget 2015 include:

BUSINESS

CORPORATION TAX

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.

DIVIDENDS

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

NATIONAL INSURANCE

The employment allowance will rise from £2,000 to £3,000 from April 2016.

APPRENTICESHIPS

An apprenticeship levy will be introduced for large companies to help fund training.

PERSONAL

PERSONAL ALLOWANCE

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.

INHERITANCE TAX

A £175,000 transferable threshold for residential property passed to children and grandchildren will be phased in from 2017.

PROPERTY TAX

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

Rent-a-room relief will rise to £7,500 a year from April 2016.

NON-DOMICILES

The permanent non-domicile tax status will be abolished from April 2017.

PENSIONS

Pension contributions tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 a year from April 2016.

CHILDCARE

Working parents in England with children aged 3 or 4 will receive up to 30 hours of free childcare from September 2017.

OTHER

TRANSPORT

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.

NORTHERN INFRASTRUCTURE

£30 million in additional funding will be provided to Transport for the North over 3 years.

BANK LEVY

Bank levy will be reduced over 6 years and replaced with an 8% surcharge on banking sector proits from 1 January 2016.

DUTIES

New vehicle excise duties will be introduced in 2017 and fuel duty will remain frozen.

Contact us today to discuss the Summer Budget.

Call Us For A Free Quote
error: