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News & Blog

Condies provide a summary of the Summer Budget 2015

Posted: 9th July 2015

BUSINESS CORPORATION TAX

The corporation tax rate will be cut to 19% in 2017 and 18% in 2020. Payment dates for large companies will be brought forward.

NATIONAL LIVING WAGE

A compulsory wage for over 25s of £7.20 an hour will be introduced in 2016, rising to over £9 in 2020.

DIVIDENDS

Dividend tax credit will be replaced by an annual tax-free allowance of £5,000.Tax rates of 7.5% and 32.5% will be set for basic rate and higher rate taxpayers on income from dividends.

ANNUAL INVESTMENT ALLOWANCE

The allowance will be £200,000 from 1 January 2016.

NATIONAL INSURANCE

The employment allowance will rise from £2,000 to £3,000 from April 2016.

APPRENTICESHIPS

An apprenticeship levy will be introduced for large companies to help fund training.

PERSONAL PERSONAL ALLOWANCE

The personal allowance will rise from £10,600 to £11,000 from April 2016. The higher rate threshold will increase to £43,000 from April 2016.

INHERITANCE TAX

A £175,000 transferable threshold for residential property passed to children and grandchildren will be phased in from 2017.

PROPERTY TAX

Mortgage interest rate relief on buy-to-let property will be restricted to the basic rate of income tax.This will be phased in over 4 years starting in April 2017.

RENT-A-ROOM RELIEF

Rent-a-room relief will rise to £7,500 a year from April 2016.

NON-DOMICILES

The permanent non-domicile tax status will be abolished from April 2017.

PENSIONS

Pension contributions tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 a year from April

2016.

OTHER TRANSPORT

A new roads fund will be created to ensure continued investment in the road network.

STUDENT MAINTENANCE GRANTS

Maintenance grants will be replaced by loans of up to £8,200 for new students from the 2016/17 academic year.

TV LICENCE FEES

The BBC will be responsible for funding the over-75s licence fee concession from April 2018.

NORTHERN INFRASTRUCTURE £30 million in additional funding will be provided to Transport for the North over 3 years.

BANK LEVY

Bank levy will be reduced over 6 years and replaced with an 8% surcharge on banking sector proits from 1 January 2016.

DUTIES

New vehicle excise duties will be introduced in 2017 and fuel duty will remain frozen.

CHILDCARE

Working parents with children aged 3 or 4 will receive up to 30 hours of free childcare from September 2017.

To view the full report please follow this link

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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