The Budget 2015 – ‘The Chancellor’s last chance to make a difference?’
On Wednesday 18 March 2015, the Chancellor George Osborne will deliver his 2015 Budget speech which sets out the UK government’s plans for the economy and public finances.
It is a very important Budget this year due to the General Election taking place less than seven weeks after Budget Day. No doubt the Budget is going to be a highly political one and the main announcements are likely to have strong influence on the Election campaign.
So how will the announcements affect you? Who will be the winners and losers? How are the UK’s businesses going to be affected? SeavorChartered will be analysing what the announcements mean for both businesses and individuals so please visit www.seavorchartered.co.uk for our response and an understanding of how the changes will affect you.
So what announcements could there be in Budget 2015?
Personal allowances and Income Tax thresholds
In the Autumn Statement in December 2014, it was announced that from April 2015 the personal allowance (the amount which can be earned free of Income Tax) would be increased to £10,600. It might be that the Chancellor repeats his earlier promise to raise the personal allowance to £12,500 over the forthcoming Parliament.
There may also be an indication of the intention to raise the 40% tax threshold to apply to incomes above £50,000 by the end of the decade.
Pensions and pensioners
The Prime Minister has announced that he wants to protect pensioner benefits but there may be some changes to the tax arrangements which would affect future pensioners. There may well be announcements about tax relief for pension contributions which could restrict the amount of contributions which qualify for tax relief.
Inheritance Tax
There may be a return to the pledge to increase the Inheritance Tax nil rate band from £325,000 to £1million. Will this be £1million per person or per married couple/civil partnership?
Capital Allowances
The Annual Investment Allowance has become a regular show at recent Budgets. The increased allowance of £500,000 is welcomed however this is due to fall back down to £25,000 on 1 January 2016. Will the Chancellor promise to leave it at £500,000?
Entrepreneurs Relief
Following an unexpected change announced in the Autumn Statement in December 2014, Entrepreneurs Relief can no longer be claimed on the transfer of Goodwill on incorporation. It is possible that the Chancellor will announce further changes to the relief due to the unexpectedly higher cost of the relief to HM Revenue & Customs.
If you would like to find out more about the Budget and how it may affect you or your business please do not hesitate to contact Sarah Seavor on 01228 492 729 or 07712 218 540 or Request a Call Back.
