Search Coreco

Budget 2015 – Some Key Points


Detail on a couple of aspects to follow :-

• Unemployment to fall to 5.3% this year
• 80% of jobs full time and growing fastest in NW – County of Yorkshire created more jobs than France!
• Lock in historically low interest rates for the long term

• Lifetime allowance on pensions going from £1.25m to £1m, from 2018 will be indexed – No cut to annual allowance so still £40,000

• Raising rate of bank levy to 0.21% raising £5.3 bill – no longer allowed to offset PPI compensation expenses
• Corporation Tax cut to 20% – any increase only
• Abolish NI for under 21’s and also for apprentices
• Self-Assessment form annual tax return abolished – digital tax accounts
• Class II NI scrapped for Self-Employed

• Penny off a pint
• Spirits and ciders cut 2p, wine duty frozen

• Personal tax allowance raised to £10,800 in 2015/16 then £11,000
• Higher rate tax raised to £43,300from £42,385 – above inflation
• Review of IHT avoidance through deeds of variation

• 4 steps in savings:-

1. 5m pensioners will have access to annuities – tax charged at marginal rate
2. ISA changes – now fully flexible, can take out and put back without losing tax free status
3. Help To Buy ISA – for every £200 saved gov will put in £50 more – so £12,000 will get £3000 more from gov – will run for 4 years and you cut put in £1,000 upfront then up to £200 per month – max bonus is £3,000 per person
4. Personal savings allowance from April – first £1,000 per annum tax free

Comments are closed.