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.