Last week brought the eagerly awaited Summer 2015 Budget – the first of the new Conservative government. This was the chance to see whether they would deliver on their election promises, and a guide to what the next five years has in store.
It’s safe to say there was a lot to digest and while this blog only scratches the surface it gives you an insight into the areas that we feel will impact most on you and your businesses.
Changes for individuals
The long awaited changes to Inheritance Tax thresholds specifically for the family home were announced while at the other end of the spectrum the difference between treatment of mortgages for homeowners and private landlords is being partially addressed:
Everyone will receive more income tax free with the announcement of increases in allowances, but extraction of profits via dividends is set for reform:
Changes for businesses
Minimum wage levels are increasing with the introduction of a National Living Wage from April 2017 of £7.20 which is estimated to cost the average employer an extra 1% on their wage bill. To counter this, other taxes are reducing:
Further investment in plant and equipment is being encouraged, but incorporation and acquisition incentives are being removed:
Many other areas of your business or personal affairs may have been impacted by the budget announcements and subsequent expected reforms. Pension relief reforms (which we’ll cover on a separate blog), vehicle excise duty changes, insurance premium tax rises, apprenticeships incentives, rent–a-room changes, the abolition of student grants (again!) are just a few of these areas. If there is anything that you need further information on, don’t hesitate to give a member of the team a call.
There are many ways that we can advise you and your company on the changes outlined above, particularly surrounding dividend extraction, inheritance tax and investment allowance planning, as well as many other areas. We’ll be talking to our clients about this and other matters over the coming months but in the meantime, why not get in touch and arrange a meeting with us to discuss how they impact you.