We have pleasure in attaching our summary of the key announcements in the Chancellor’s 2015 Budget statement. Unsurprisingly, the imminent General Election was one of the drivers of the 2015 Budget. Many of the proposals will not take effect until later in 2015/16 or the following tax years. If there is a change of government some of them may not survive, though the Shadow Chancellor seems to have indicated this morning that the policy focus of a Labour government would be on greater public service and welfare spending.
The Budget highlights include:
- The personal allowance will increase to £10,800 in 2016/17 and £11,000 in the following year.
- The higher rate threshold will rise to £42,700 in 2016/17 and £43,300 in 2017/18, the first above-inflation increases in the threshold for seven years.
- Charities will be pleased by the proposed increase in the Gift Aid Small Donation maximum amount from £5,000 to £8,000 from April 2016.
- A new Help to Buy ISA will be introduced.
- There will be a cut in the pension lifetime allowance to £1 million from April 2016.
We hope that you will find the attached Budget Summary useful. If you would like to discuss any implications personal to your financial position or require specific advice in relation to the above points, please do not hesitate to contact any member of the team.