At last a bit of light relief for the taxpayer. The rates of tax will not rise during the term of this Government and they have increased the personal allowance and the higher rate threshold; not much, but the right way. Also the employer NI allowance has increased to £3,000
Dividend income – is taking a further bashing. They are doing away with the 10% tax credit and bringing an allowance of £5000. Whereby, the first £5000 of income is not taxed and the rest taxed at 7.5% for basic rate tax payers and a massive 32.5% for higher rate taxpayers. I have not looked at the finer points re sliding scale.
They are hitting landlords by restricting the relief on finance costs (buy to let mortgages) and the wear and tear relief has gone; now actual cost of replacement.
The current tax rate of 20% is going down to 19% next year and 18% the next year.
Annual Investment Allowance – it seem to be as changeable as the weather. Huge jump from £25k this year to £200k from 1 January 2016. Worth waiting to buy!
VAT – this appears to have been left alone….. I will wait for the fine print.
Insurance Premium Tax
This is increasing from 6% to 9.5% starting from 1 November 2015 for cash accounting and after for other schemes.