topic Re: Budget July 2015 in Off-Topic

Budget July 2015

jonsie — Wed, 08 Jul 2015 13:19:38 GMT

Ok guys I'm looking for some help here.

I know there is a budget as we speak so I would be grateful if anyone can post the main points here, particularly in relation to pensions and any new rule changes that will affect my imminent permanent move to Thailand.

Thanking you in trepidation

Re: Budget July 2015

viridis — Wed, 08 Jul 2015 13:29:08 GMT

George Osborne has delivered his seventh Budget as chancellor, the first for a majority Conservative government since November 1996. Here is a summary of his main announcements.
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Personal taxation and pay
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Introduction of a new national living wage for all workers aged over 25, starting at £7.20 an hour from April 2016 and set to reach £9 by 2020 - giving an estimated 2.5 million people an average £5,000 rise over five years
Low Pay Commission to advice on future changes to rate
Inheritance tax threshold will be increased to £1m from 2017
Personal allowance, at which people start paying tax, to rise to £11,000 next year
The point at which people start paying income tax at 40p to rise from £42,385 to £43,000 next year
Mortgage interest relief for buy-to-let homebuyers to be restricted to basic rate of income tax
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Welfare and pensions
Tax credits and Universal Credit to be restricted to two children, affecting those born after April 2017.
Income threshold for tax credits to be reduced from £6,420 to £3,850
Working-age benefits to be frozen for four years - including tax credits and local housing allowance, but maternity pay and disability benefits exempted
Rents in social housing sector will be reduced by 1% a year for the next four years
Higher-income households in social housing will be required to pay rents at the market rate
Disability benefits will not be taxed or means-tested while state pension triple lock to be protected
18-21-year-olds will not be entitled to claim housing benefit automatically, with a new "earn to learn" obligation
Employment and Support Allowance payments for claimants deemed able to work to be "aligned" with Jobseeker's Allowance for new claimants
Green Paper published on proposals for "a radical change" to pension saving system
Annual tax relief on pension contributions to be limited to £10,000 a year
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The state of the economy
Economy grew by 3% in 2014
2.4% growth forecast in 2015, 0.1% lower than predicted in March, followed by 2.3% and 2.4% in the two following years
One million extra jobs predicted to be created by 2020
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Public borrowing/deficit/spending
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Deficit to be cut at same pace as during last Parliament - securing a budget surplus a year later than planned in 2019-20
Borrowing set to fall from £69.5bn this year to £43.1bn, £24.3bn and £6bn before hitting a £10bn surplus in 2019-20
Debt as a share of GDP to fall from 80.3% this year to 79.1%, 77.2%, 74.7%, 71.5% and 68.5% in successive years
1% public sector pay rise to continue for next four years
£37bn of further spending cuts by 2020, including £12bn of welfare cuts and £5bn from tax avoidance
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Alcohol, tobacco, gambling and fuel
No rise in fuel duty with rates continuing to be frozen
Major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England
New VED bands for new cars to be introduced from 2017, pegged to emissions - 95% of car owners will pay £140 a year
Alcohol and tobacco duties not mentioned in statement
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Business
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Corporation tax to be cut to 19% in 2017 and 18% in 2020
Permanent non-dom status to be abolished - from April 2017, anyone who has lived in the UK for 15 of the past 20 years will pay same level of tax as other UK citizens
£7.2bn to be raised from clampdown on tax avoidance and tax evasion with HMRC budget increased by £750m
Bank levy rate to be gradually reduced over the next six years and a new 8% surcharge on bank profits introduced from January 2016
Cap on charges imposed by claims management companies and an increase in insurance premium tax to 9.5% from November
New apprenticeship levy for large employers
Climate Change Levy exemption for renewable electricity to be removed.
National Insurance employment allowance for small firms to be increased by 50% to £3,000 from 2016
Dividend tax credit to be replaced with a new tax-free allowance of £5,000 on dividend income. Rates of dividend tax to be set at 7.5%, 32.5% and 38.1%.
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Health and education
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NHS will receive a further £8bn by 2020 (in addition to the £2bn already announced)
Student maintenance grants to be replaced with loans from 2016-17, to be paid back once people earn more than £21,000 a year
The maintenance loan will increase to £8,200
New university professorships to be created to mark the Queen's 90th birthday
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Housing/infrastructure/transport/regions
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Control over fire services, planning and children's services to be handed to consortium of 10 councils in Greater Manchester
Discussions on devolution of services to Sheffield, Liverpool and West Yorkshire
£30m for new body to promote integrated transport - including use of Oyster cards - in the north of England
Rent-a-room relief scheme to rise to £7,500
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Defence
Government to spend 2% of GDP on defence every year, meeting Nato target
Spending on defence to rise in real terms every year during the Parliament
New £1.5bn Joint Security Fund to be created
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Measures announced before Budget
The cost of funding free TV licences for the over-75s will be transferred from the government to the BBC between 2018 and 2021
The annual household benefit cap will be reduced to £23,000 in London and to a lower level in the rest of Britain.
Subsidies for social housing will be phased out with local authority and housing association tenants in England who earn more than £30,000 - or £40,000 in London - having to pay up to the market rent
A consultation will take place on changing Sunday trading laws
Recipients of the Victoria Cross and George Cross will see annual pension annuities rise from £2,129 to £10,000, paid for by bank fines

Re: Budget July 2015

viridis — Wed, 08 Jul 2015 13:31:26 GMT

http://m.professionaladviser.com/professional-adviser/news/2416833/summer-budget-confirms-high-earner-pension-tax-relief-cut

Re: Budget July 2015

viridis — Wed, 08 Jul 2015 13:32:07 GMT

http://www.ibtimes.co.uk/summer-budget-2015-george-osborne-open-radical-reform-pensions-system-isa-idea-1509929

Re: Budget July 2015

jonsie — Wed, 08 Jul 2015 13:32:23 GMT

Wow that's some summary and thank you so much @viridis

You have just killed the thread.....

Re: Budget July 2015

viridis — Wed, 08 Jul 2015 13:33:11 GMT

Ripped from BBC feed

Re: Budget July 2015

jonsie — Wed, 08 Jul 2015 13:37:27 GMT

For some reason the bbc website has gone down here.....

I blame the army starting to control the Internet!

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 14:04:00 GMT

Quick reaction from @viridis I don't think you have too much to worry about @jonsie !

Re: Budget July 2015

jonsie — Wed, 08 Jul 2015 14:08:35 GMT

@perksie wrote:
Quick reaction from @viridis I don't think you have too much to worry about @jonsie !

Well g he house is sold, wife is in situ and there's no turning back. Bridges burned but hey, we pass this way but once and whatever the bureaucrats in the UK throw at me ill cope. I now have a Thai bank account which was trial and tribulation in itself but ill be keeping a UK account and my money safe from her ladyship

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 14:12:24 GMT

@jonsie wrote:
ill be keeping a UK account and my money safe from her ladyship

Anyone would think you were an ex-banker, oh hang on................

Re: Budget July 2015

jonsie — Wed, 08 Jul 2015 14:18:10 GMT

@perksie wrote:
@jonsie wrote:
ill be keeping a UK account and my money safe from her ladyship
Anyone would think you were an ex-banker, oh hang on................

Know your enemy....even if you are married

I have kids that I will make sure are ok no matter what!

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 14:22:52 GMT

@jonsie wrote:

I have kids that I will make sure are ok no matter what!

Of course you will, never any doubt on that.

If anything crops up that might affect you financially I'll be in touch anyway.

Re: Budget July 2015

Anonymous — Wed, 08 Jul 2015 15:21:44 GMT

just imagine how much quicker they could clear the deficit if they stopped the £13 billion a year in foreign aid #justsaying

Re: Budget July 2015

Cleoriff — Wed, 08 Jul 2015 15:27:38 GMT

Nothing announced as far as I am aware to make big companies like Amazon et al ...pay the correct amount of tax they are so far getting away with......

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 15:29:14 GMT

@Anonymous wrote:
just imagine how much quicker they could clear the deficit if they stopped the £13 billion a year in foreign aid #justsaying

Foreign aid is essential and saves many lives around the world, there is no justification for stopping it.

Re: Budget July 2015

Anonymous — Wed, 08 Jul 2015 15:29:39 GMT

@Cleoriff wrote:
Nothing announced as far as I am aware to make big companies like Amazon et al ...pay the correct amount of tax they are so far getting away with......

Very true!!

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 15:33:29 GMT

@Cleoriff wrote:
Nothing announced as far as I am aware to make big companies like Amazon et al ...pay the correct amount of tax they are so far getting away with......

Not what I heard, tax avoidance measures are to produce an extra £3.1 billion.

Re: Budget July 2015

Cleoriff — Wed, 08 Jul 2015 15:41:53 GMT

Whether those tax avoidance measures include the companies I mean remains in question...I listened to Theresa Mays speech post budget and thought she made a point of calling him on this?. Whether or not, it needs to be done and soon. They owe the UK millions...They have got away with it for years so I will be interested to see if they are brought to heel.....I have reasons to feel personally aggrieved by this and have in the past taken on HMRC over a 2 year period to get justice. A battle that I eventually won ...(Surprisingly)

Re: Budget July 2015

perksie — Wed, 08 Jul 2015 15:46:31 GMT

@Cleoriff wrote:
Whether those tax avoidance measures include the companies I mean remains in question..

They include all companies operating in the UK including those that hive off money abroad.

Re: Budget July 2015

Cleoriff — Wed, 08 Jul 2015 15:50:09 GMT

@perksie wrote:
@Cleoriff wrote:
Whether those tax avoidance measures include the companies I mean remains in question..
They include all companies operating in the UK including those that hive off money abroad.
I wont hold my breath...but wait and see (and then probably post a Hold the front page if such a miracle occurs)