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Budget highlights

Some of the key tax points of the Budget are:

l

Dividend tax credit will be abolished from April 2016 and there will be a new dividend

tax allowance of £5,000 a year. Above that level the tax rates on dividends will rise by

7.5%.

l

For private landlords the wear and tear allowance will be replaced by a new relief

allowing the actual costs of replacing furnishings from April 2016; and individual

landlords’ tax relief for finance costs will be restricted to basic rate tax – to be phased

in over four years from April 2017.

l

The national insurance contribution (NIC) employment allowance of £2,000 will rise to

£3,000 from April 2016.

l

Non-UK domiciled individuals who have been UK resident for at least 15 of the last

20 years will be treated as UK domiciled for tax, including inheritance tax (IHT), from

April 2017.

l

There will be an extra transferable IHT nil-rate band for main residences passed on

death to direct descendants, starting at £100,000 in 2017/18 and rising to £175,000 in

2020/21.

l

The corporation tax rate will be reduced from 20% to 19% in the financial year 2017,

and 18% in 2020.

l

The annual investment allowance available to businesses will be reduced to £200,000

from 1 January 2016.

© Copyright 8 July 2015. All rights reserved. This summary has been prepared very rapidly and is for general

information only. The proposals are in any event subject to amendment before the Summer Finance Bill 2015 is

passed. You are recommended to seek competent professional advice before taking any action on the basis of

the contents of this publication.

CONTENTS

Budget highlights

1

Introduction

2

Personal taxation

3

Pensions and savings

4

Inheritance tax

6

Business taxes

7

Tax simplification

10

Anti-avoidance measures

11

Welfare

13

Income tax

15

National insurance contributions

16

BUDGET

8 JULY 2015

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