Budget 2015: Overview of Key Points

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March 29th 2020
Tax Week 52
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Budget 2015: Overview of Key Points

Now that the 2015 UK Budget has been delivered, we go over the key issues raised.

In just over one hour, Chancellor George Osborne delivered his Budget speech - a definite pre-Budget election speech with a lot of time spent going over the achievements of the Government over the last five years.

The country has seen the highest growth since 2007 and had the fastest growth of all G7 economies last year. Debt is falling as a share of GDP and the deficit forecast has halved.

Personal allowances are always a headline figure and there is no change from what was announced a few months ago in the Autumn Statement for next months new tax year - the allowance will be increased to £10,600. However, in 2016 it will rise by £200 to £10,800 and hit £11,000 in 2017.

At the same time the higher rate threshold will increase to £32,100 in 2016 and £32,300 in 2017.

Some of the other main points:

  • Class 2 NIC's removed for Self Employed People

    This has been announced for consultation starting this Autumn and inclusion into the next Parliament.

  • Personal Savings Allowance

  • Help to Buy ISA

    A new type of savings account aimed at first-time buyers saving for their deposit.

    The Government will provide a bonus of £50 for every £200 deposited into the account up to a maximum of £3,000 on £12,000 worth of savings. The account will only be able to be funded at the rate of £200 per month but a opening boost of £1,000 is allowed. The bonus scheme will be regulated to make sure it is only used for home purchases.

  • ISA Flexibility

    Savers will be able to withdraw money from an ISA during the tax year and then be able to re-invest without losing their tax-free entitlement.

  • Fuel Duty Rise Cancelled

    The RPI linked rise scheduled for September 2015 has been cancelled. It would have added 0.54 pence per litre.

  • Beer Duty Cut

    Beer duty cut by 1 pence per pint, spirits cut by 2 per cent and wine duty frozen.

  • Pension Annuity Freedoms

    Annuities can be sold for a cash lump sum from April 2016 without having to pay 55 per cent tax - instead the seller pays just their marginal rate of tax.

  • Gift Aid Changes

    The limit on small donations receiving a 25 per cent top-up has been raised to £8,000 per annum from £5,000. The extra amount should benefit up to 6,500 charities.

  • Tax Return Abolished

    Consultation will begin in Autumn 2015 on phasing in a Digital Tax Account to negate the need to file a tax return once per year. Read more here.

  • Bank Levy Raised

    A small increase to the tax on bank profits will raise an extra £900 million for the Treasury.

  • Postgraduate Research Loans

    Students wishing to undertake research will now receive income based loans of up to £25,000 to help them in their endeavors. On top of existing subsidies provided, the Government hopes to strengthen the support package.

  • Local Newspapers Get Tax Reliefs

    Consultation to begin on helping struggling local newspapers by providing a special business rate relief.

Remember our calculators are all ready to go on all the updates, use them to see how you fare in the next tax year.

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