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The Budget
Spring 2015
We will bring you the news as it happens on the Budget.
The Budget, being the last delivered by this government will be delivered with one eye on the voter so expect a few gifts along the way with, I am sure, a very optimistic chancellor delivering the budget at 12.30.
What do we expect?
- We could see a change in the threshold for National Insurance, with the conservatives predicting a budget surplus in the future; they can perhaps afford to increase this threshold.
- Also, or as an alternative, we could see a rise in personal tax allowances up to as much as £11,500 but this is an expensive change for the government, we could also see the higher 40% tax rate level change.
- Changes to self assessment tax returns - no one likes the present system and its time for a change, today may be the day.
- Inheritance Tax will see some major changes, with perhaps property being dealt with differently from other assets, and allowing as much as £1 million to pass as property without the Tax.
- We expect major announcements to help house building and buyers, with the relaxation of planning plus new schemes to help buyers with deposits.
- Expect announcements on Tax avoidance - the so called 'Google Tax', and Tax avoidance in general.
With effect from this April, foreign companies selling to customers in the UK will be liable for UK tax on profits.
-Increases in the National Minimum Wage.
Increase in the National Minimum wage. - From October the National Minimum wage is to be increased by 3% to £6.70 per hour.
Headlines from the Budget.
- Pensions.
Pension pot lifetime allowance to be reduced from £1.25m to £1m from next year.
- Personal tax.
The tax-free personal allowance to rise from £10,600 in 2014-5 to £10,800 in 2015-6 and £11,000 in 2016-7
The threshold at which people start paying 40p tax to rise from £42,385 to £43,300
Annual paper tax returns to be abolished
Review of inheritance tax avoidance through "deeds of variation"
- Business
Tax on 'diverted profits' to come into effect next month.
Minimum wage rates to rise
Farmers to be allowed to average incomes for tax over five years.
We will put some meat on the bone for the changes and new measures as soon as we have them.
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