July 2015 Budget: Explained
July 10, 2015
Are your financial plans still on track after the July 2015 Budget? In our free guide (PDF) to the key announcements from the Chancellor George Osborne’s July 2015 Budget, the message is very clear: this Chancellor is set on a major reform programme this Parliament.
We saw reforms to Inheritance Tax, a new National Living Wage, new tax on dividends, and a pension’s tax relief restriction for high earners. We even saw changes to some forgotten taxes like Vehicle Excise Duty and Insurance Premium Tax.
In addition, the Chancellor is allocating additional funds to HM Revenue & Customs (HMRC) to tackle tax avoidance and compliance. This includes the introduction of a ‘special measures’ regime to tackle businesses that persistently adopt highly aggressive behaviours around tax planning.
One thing is clear – the tax lock has not stopped the Chancellor from increasing the overall tax burden. Over the six years, the tax changes alone raise an additional £29bn, more than the total amount raised in one year from either business rates or council tax. But even this pales compared to the cuts in spending, which amount to almost £46bn, giving a grand total of almost £75bn.
The Chancellor has also promised a plethora of consultation documents, some of which were provided and others that will appear over the summer, including the potential reform of pensions to be taxed like Individual Savings Accounts (ISAs).
All in all, the Chancellor delivered a surprising array of policies and reforms. Taxes have clearly risen but the impact is hard to see at first. However, that impact is something many individuals and businesses are likely to feel over the rest of this Parliament’s lifetime.
There are likely to have been a number of key announcements in this Budget that could have a bearing on your current and future financial plans.
To review what action you may require to take to keep your plans on track, please contact us on 01793 750101 or request a call back here