March 10, 2015
George Osborne will deliver his last budget before the General Election on Wednesday 18th March 2015. Here’s what to expect with a couple of wildcard predictions…
What we know:
- Personal allowance to be increased from £10,000 to £10,600.
- Married couples will be able to apply for the Marriage Allowance. This is a tax break that could save some couples up to £212 per year. The allowance lets those couples that are paying low or no tax to transfer up to £1,060 of their 2015/16 personal tax-free allowance to their spouse.
- Capital Gains Tax annual exemption will increase from £11,000 to £11,100.
- No change in Inheritance Tax nil rate band which remains at £325,000.
- Non-residents will be liable to capital gains tax on residential properties sold at a gain from 6 April 2015.
- Significant pension changes will come into force including:
- Ability to pass on uncrystallised pension funds and draw down defined contribution pension funds tax free for those who die under the age of 75
- For individuals who die over the age of 75, a beneficiary will pay income tax at 45% if they take benefits as a lump sum.
- A new reduced £10,000 Annual Allowance will apply to individuals who contribute to a defined contribution fund where they have already taken benefits under the new flexible pension rules.
- An increase in the personal allowance over the lifetime of the next Parliament towards £12,500.
- Further pledge to increase the level at which higher rate tax is paid to £50,000
If you’d like further information on the latest legislation for contractors please contact one of our experts on 0203 713 4530 or email firstname.lastname@example.org
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