From a taxation perspective an interesting budget from George Osborne today with the following snippets of note for our clients:
- NIC Employment Allowance increased from £2,000 to £3,000 from April 2016 but stops for companies where the director is the sole employee;
- Buy To Let - interest on borrowing being restricted to Basic Rate, reform of Wear & Tear Allowance;
- Rent a Room relief increased to £7,000 from April 2016;
- IHT – additional nil-rate band when a residence passed on death to direct descendants;
- Annual Investment Allowances increased;
- Pension changes to Lifetime Allowance and Annual Allowance amongst others;
- Corporation tax rates – being reduced from 20% to 19% in 2017 and 18% in 2020;
- Dividend Taxation – tax credit going from April 2016 with £5,000 Dividend Tax Allowance and tax at 7.5%, 32.5% and 38.1% on dividend income above the allowance.
The following link to HMRC’s website gives more information:
Whilst we have no reason to believe the above is not accurate it is for general guidance only. Buick & Co Chartered Tax Advisers and Tax Consultants take no responsibility whatsoever for this blog, its reliability or any actions you take having read it.