Second Budget 2015

Posted on July 9, 2015

Chancellor George Osbourne delivered the first full “Tory” Budget in nearly 20 years. Heralding the Second Budget as a “big Budget for a country with big ambitions” he announced a series of measures affecting business, tax and welfare.

The key announcements were as follows:-

  • A new Inheritance Tax nil-rate band for family homes, phased in from 2017.
  • Mortgage interest relief for buy-to-let homebuyers to be restricted to basic rate of income tax.
  • Corporation tax to be cut to 19% in 2017 and 18% in 2020.
  • From April 2016 dividend tax credit to be replaced with a new tax-free allowance of £5,000 on dividend income. New rates of tax on dividend income of 7.5%, 32.5% and 38.1%.
  • Annual Investment Allowance set at £200,000 from January 2016.
  • From 6th April 2016, the benefits of pensions tax relief, for those earning more than £150,000, will be restricted, tapering away to £10,000, down from £40,000.
  • Employment Allowance increased to £3,000 from April 2016.

Download your full copy of the Budget booklet here. If you would like to discuss any of the issues raised by the Budget, please do contact us.

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