Summer Budget 2015

Following the recent general election the Chancellor George Osborne presented the first Conservative budget for almost 20 years. Some of the highlights likely to affect our clients are: Corporation tax to fall from current 20% to 18% by 2020, personal tax allowances to rise to £11,000 next year and higher-rate will increase to £43,000.

Dividend tax credit will be removed from next year with a new ‘dividend allowance’ of £5,000. This will be taxed at 7.5% for basic rate payers. Mortgage interest relief for landlords will be cut to the basic rate (currently 20%). Rent a room scheme for those with lodgers will have an increased £7,500 allowance. From April 2017 there will be a family home allowance for inheritance tax purposes. Employment Allowance will increase by a further £1,000 to £3,000.