Autumn Budget Statement 2016
Philip Hammond presented his first and last Autumn Statement on 23 November 2016. Our summary of the Autumn Statement provides details of all the key announcements and tax changes.
Budget summary – 16 March 2016
Having previously announced increases in dividend tax rates for 2016/17, the Chancellor had some good news for small business owners in his Budget Speech. Business rates relief has been expanded and made permanent. In addition, £1,000 allowances are introduced for trading profits and rental income which will mean some people will not need to declare such income.
Click here for key points announced in the budget.
Autumn Statement 2015
The highlights of George Osborne’s speech on 25 November 2015 was the government’s climbdown on tax credits and the increase in stamp duty land tax for buy-to-lets and second home purchases.
The main tax changes introduced by the Chancellor can be found in our Autumn Statement Tax Summary
The Spring Budget 2015
One of George Osborne’s first acts as Chancellor was to establish the Office of Tax Simplification (OTS). That organisation has spent the last five years identifying needless complexity in the tax system and recommending changes to make dealing with tax less taxing. Sadly, whatever the OTS does to reduce complications, the Chancellor seems to replace with more. Few people expected the July Budget to be so full of far reaching measures that over the next few years will significantly change the way tax is calculated.
We were promised, of course, the ‘tax lock’ – a law to prevent the Government putting up the rates of income tax, national insurance and VAT but there are more ways to increase taxes than just putting up the headline rates. A significant reform of the taxation of dividend income next year will affect those who have been able to extract profits from their personal company in a tax-efficient way. The reduction of income tax relief on mortgage interest relief will put up the tax charges for buy-to-let landlords from April 2017. Restricting the tax advantageous of people who are currently classified as ‘foreign domiciled’ is another potential tax-raising measure, but it is not clear whether wealthy international people will pay more tax or will move elsewhere.
As expected, the Chancellor has focused his attention on the welfare budget, hoping to save £12 billion. He said he wanted to move to a ‘higher wage, lower tax, lower welfare economy’. He has announced a higher National Living Wage and higher personal allowances – and has certainly cut welfare. It remains to be seen whether that will generate the economic activity he hopes for.
For more information regarding any of the changes announced in the budget please give us a call. We would be happy to advise you on what it all means for you personally.
New Budget date set for 8 July 2015
The Treasury confirmed on Saturday that Chancellor George Osborne will present the second budget of 2015 on 8 July.