If you or your partner
have low earnings or
benefit from the 0% tax
rate on up to £5,000 of
savings income in 2015/16.
8 JULY 2015
Residential landlords – reform of the wear and tear
The wear and tear allowance will be replaced from April 2016
with a new relief that allows all residential landlords to deduct
the actual costs of replacing furnishings. Capital allowances will
continue to apply for landlords of furnished holiday lets.
Residential landlords – restricting finance cost relief
The relief on finance costs (e.g. interest) that individual landlords
of residential property can receive will be limited to the basic rate
of tax. The restriction will be phased in over four years, starting
from April 2017.
From 6 April 2016 the level of rent-a-room relief will be increased
from £4,250 to £7,500 a year.
PENSIONS AND SAVINGS
Personal savings allowance
From 6 April 2016 an allowance will be introduced to remove
tax on up to £1,000 of savings income for basic rate taxpayers
and up to £500 for higher rate taxpayers, as announced in the
March Budget 2015. Additional rate taxpayers will not receive an
allowance. Automatic deduction of 20% income tax by banks and
building societies on non-ISA savings will cease from the same
Pensions – reduced lifetime allowance
From 6 April 2016 the lifetime allowance for pensions will
be reduced from £1.25 million to £1 million, as previously
announced. Transitional protection for pension rights that are
already over £1 million will be introduced to ensure this change is
not retrospective. The lifetime allowance will be indexed annually
in line with the consumer prices index (CPI) from 6 April 2018.
Pensions – reduced annual allowance
From April 2016 a tapered reduction in the amount of the
annual allowance will be introduced for individuals with
income (including the value of any pension contributions) of
over £150,000 and who have an income (excluding pension