The Budget 2015 Highlights
- The lifetime allowance for pension savings that can be accumulated free of tax will be cut from £1.25m to £1m from April 2016, saving £600m annually
- Pensioners will be able to trade in their annuities for cash pots, with the 55% tax charge abolished and tax applied at the marginal rate
Alcohol, tobacco and gambling and fuel
- Beer duty cut by 1p a pint & cider by 2p. 2% cut in excise duty on scotch whisky & other spirits while wine duty frozen
- No changes to tobacco & gambling taxes, with tobacco duties set to rise by 2% above inflation, equivalent to 16p on a packet of 20 cigarettes.
- New “horse racing betting right” to replace the 50-year old horserace betting levy on British bookmakers
- Petrol duty frozen – September’s planned increase cancelled
- Tax-free personal allowance to rise from£10,600 in 2015-6 to £10,800 in 2016-7 & £11,000 in 2017-8
- The threshold at which people start paying 40p income tax to rise by above inflation from £42,385 in 2014-5 to £43,300 in 2017-8
- Annual paper tax returns to be abolished & replaced by digital accounts.
- Transferable tax allowance for married couples will rise to £1,100
- Class two national insurance contributions for self-employed to be abolished in next Parliament
- First £1,000 interest on savings income to be tax-free for basic rate taxpayers & £500 allowance for 40p tax ratepayers.
- Annual savings limit for ISAs increased to £15,240
- “Fully flexible” ISA to allow savers to withdraw money & put it back later in the year without losing any tax-free allowance
- New “Help to Buy” ISA for first-time buyers tol allow government to top up by £50 every £200 saved for a deposit
- Review of business rates
- Automatic gift aid limit for charities to be extended to £8,000