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Summer Budget 2015 – Summary

Following the surprise Conservative victory in the general election, the new government announced shortly after that there would be a second Budget in July – and here we are.

Some of George Osborne’s most significant announcements included:

  • Dividend tax credit will be abolished from April 2016 and there will be a new dividend tax allowance of £5,000 a year. In addition, there will be new dividend taxes.
  • Private landlords’ wear and tear allowance will be replaced in April 2016 with a deduction for the actual cost of replacing furnishings.
  • The NIC employment allowance of £2,000 will rise to £3,000 from April 2016, but will not be available for single director/employee companies.
  • Non-UK domiciled individuals who have been resident in the UK for at least 15 of the last 20 years will be treated as UK domiciled for tax, including inheritance tax, from April 2017.
  • The government will be consulting on radical reform of the system of tax relief for pensions.
  • The introduction of the secondary market in pension annuities has been postponed until 2017.

If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch with us to discuss them.

For our full summary of the Budget highlights click here:  Summer Budget 2015, a summary.