Budget booklet 2015

Chancellor George Osbourne delivered his 2015 Budget to Parliament yesterday. He stated that “Britain is walking tall again”, that the “national debt target has been met” and predicted the “end of austerity” a year early.

The key announcements were as follows:-

  • An increase in the personal allowance for income tax to £10,800 for 2016/17 and £11,000 for 2017/18
  • Higher rate threshold for income tax to rise from £42,385 in 2014/15 to £43,300 in 2017/18
  • A new personal savings allowance for the first £1,000 of interest on savings to be tax free (£500 for higher rate taxpayers)
  • The annual investment allowance will not be cut from £500,000 to £25,000 in January 2016 but will be reviewed in the 2015 Autumn Statement
  • A reduction in the pension lifetime limit from £1.25m to £1m from 2016/17
  • From 1 April 2015, the Research and Development rate of the small and medium (SME) scheme will increase from 225% to 230%
  • From 6 April 2015, employers are no longer required to pay class 1 employer’s NIC on earnings paid up to the upper secondary threshold for employees under the age of 21
  • From April 2016, employer’s NIC up to the upper secondary threshold for apprentices under the age of 25 will be abolished
  • The annual savings limit for ISAs increased to £15,240 and the introduction of a more flexible ISA and help-to-buy ISA
  • From April 2016, rules on annuities to be relaxed

Download the Garratts budget booklet PDF