Budget Summer 2015 – The highlights

George Osborne presented the new Government’s first Budget of this Parliament on Wednesday 8 July 2015. This was the first Conservative Budget for 19 years and set out plans for the next five years ‘to keep moving us from a low wage, high tax, high welfare economy; to the higher wage, lower welfare country we intend to create’.

Main Budget tax proposals

  • Extension to the inheritance tax nil rate band available.
  • New taxation system for dividend receipts for individuals – one which will impact a huge number of Dafferns clients.
  • An increase in the amount of the NIC Employment Allowance – which potentially only partly offsets the tax change on dividends.
  • Proposals to restrict interest relief for ‘buy to let’ landlords.
  • Announcing the amount of the Annual Investment Allowance available to businesses from January 2016, of £200k, down from £500k.
  • Removal of the tax relief available on the acquisition of goodwill and customer related intangibles – again this will have a big impact for many of our clients.
  • The government also announced a number of changes to tax credits and Universal Credit as part of the welfare reforms aimed at reducing the growing expenditure in this area.

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