George Osborne will be presenting his Summer Budget to the House of Commons on Wednesday 8th July 2015.
In our live blog, we will be covering the main personal financial planning and investment measures as they happen.
We aim to publish a briefing note for clients and professional contacts by teatime on Wednesday and will publish more detailed analysis of the Budget measures on our blog during the week.
Follow us on Twitter @InformedChoice for more #SummerBudget news, views and analysis.
06/07/2015 11:58 – The Government has confirmed its plans to remove inheritance tax on family homes worth up to £1m, funded with a cut in pensions tax relief for higher earners. These changes are expected to come into force in April 2017, with the inheritance tax nil rate band increased from £325,000 to £500,000 when a property is included in the value of an estate. The annual allowance for pension contributions would be reduced for those earning £150,000 a year, with it falling to £10,000 for someone earning £210,000 a year.
06/07/2015 16:09 – The Government has pledged an investment of £30m to speed up the adoption process in England. This money will be paid to local authorities this year to cover costs they incur in finding parents located beyond their geographical borders.
06/07/2015 16:31 – This one is bound to cause a fuss. The government will stop funding the cost of free TV licences for the over-75s, instead passing this responsibility over to the BBC. This change will be phased in from 2018/19, fully in place by 2020/21.
07/07/2015 08:04 – For those of us who get frustrated by the supermarkets closing at 4pm on Sundays, the Summer Budget could have a solution. Chancellor George Osborne is expected to give local authorities and elected mayors the power to relax Sunday trading laws locally, where it might boost economic activity.
08/07/2015 07:42 – It’s Budget Day! The BBC is reporting that George Osborne is expected to slow the pace of his planned welfare spending cuts, extending the timetable for £12bn of cuts to three years from the originally planned two years. Tax credits for families with more than two children are expected to be in the firing line.
Today I will present a Conservative Budget – a Budget that puts economic security first pic.twitter.com/yQ8kD8nmo9
— George Osborne (@George_Osborne) July 8, 2015
08/07/2015 11:21 – “Big. Very big.” That’s how an insider has referred to the Budget today. Not long now until we find out!
First budget in years where I expect something big & haven't clue what it is. Some may see that as progress, not me! #budget2015
— Robert Peston (@Peston) July 8, 2015
08/07/2015 12:29 – Prime Minister’s Questions is drawing to a close, nearly time for George Osborne to stand up and deliver his Summer Budget.
08/07/2015 13:07 – It has been described as a “Budget for working people” and one which “puts security first”. The worst of austerity appears to be behind us as the forecast for the country to be in surplus is not now until 2019/20. Some big changes for non-doms, with loopholes closed from April 2017, raising £1.5bn over the life of this parliament. The bank levy rate is being gradually reduced over the next 6 years, but an 8% surcharge applied on bank profits from next year.
08/07/2015 13:10 -Big news for landlords, as mortgage interest relief is capped to basic rate income tax. This change to be phased in over four years, starting from April 2017.
08/07/2015 13:14 – George Osborne delivers on the Conservative manifesto pledge on inheritance tax, increasing the nil rate band to £1m on family homes (for a couple). This will be reduced from £2m. From today onwards, those downsizing their property will not lose this additional nil rate band. This will be funded by cuts to pension tax relief for higher earners.
08/07/2015 13:15 – Big changes to dividends, with dividend tax credit replaced by a £5,000 tax-free allowance and new rates of income tax for dividends from April 2016 onwards.
08/07/2015 13:19 – Corporation tax is being cut, from 20% to 19% in 2017 and 18% in 2020. “Britain is open for business”.
08/07/2015 13:21 – Principles for welfare cuts to protect elderly and vulnerable. “Best route out of poverty is work.” A new Youth Obligation to be introduced for 18 to 21 year olds, “earn or learn”. From September 2017, working parents of 3 and 4 year olds will receive 30 hours a week of free childcare.
08/07/2015 13:42 – That’s it for the Summer Budget. We are getting straight to work now with our Budget Briefing Note for clients and professional contacts, available very soon to download from our website.
If you have any questions about the Summer Budget, please post them in the comments below or send us an email to hello@icfp.co.uk.
