29 July, 2015
Many of the measures contained in the Budget will have a significant impact, summarised below are the key implicaions to individuals.
- 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.
- 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.
- 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.
- 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