Summer Budget 2015

Financial Services Article

29 July, 2015

Many of the measures contained in the Budget will have a significant impact, summarised below are the key implicaions to individuals.

Inheritance Tax

  • An additional main residence Nil Rated Band is to be introduced with effect from April 2017.

Buy To Lets

  • Mortgage Interest Relief for Landlords is to be cut to the basic rate. This restriction will be introduced on a phased basis over four years starting from April 2017.

Pensions

  • The Lifetime Allowance will drop from £1.25 million to £1 million from 6th April 2016.
  • Also from 6th April 2016 the Annual Allowance for those with taxable income over £150,000 will reduce by £1 for each £2 of income over £150,000.
  • All pension input periods to now be aligned to the tax year.

Personal Allowances

  • From next tax year the Personal Allowance will be £11,000 and the point at which 40 pence tax is paid will be £43,000.

Insurance Premium Tax

  • Insurance Premium Tax is to be increased from 6% to 9.5% from 1st November 2015.

Corporation Tax Rates

  • Corporation Tax rates will reduce from 20% to 19% in 2017 and then to 18% in 2020.

Investment

  • The Dividend Tax Credit is to be replaced with a new tax-free allowance of £5,000 on dividend income. From April 2016, where dividend income is greater than £5,000, a basic rate tax payer will pay tax at 7.5%, a higher rate tax payer at 32.5% and an additional rate tax payer at 38.1% on their dividend income.

Secondary Annuity Market

  • The Government has decided to delay the introduction of this measure until 2017.

Financial Services Compensation Scheme

  • From 1st January 2016 the deposit protection limit, which is currently £85,000, will reduce to £75,000.

For further information or advice please contact Peter Toner on 01772 220383 or email Peter Toner

Back

20 Apr 2017

Financial Services

NEWS AND ARTICLES

State pension to start at age 70?

Having previously been ruled out, reductions in tax relief for pension contributions are once again being…

Read the article

Make an enquiry