Following several Budgets and statements that have covered savings and pensions in detail, the Chancellor broadly paused for breath on these subjects this time round. As always, specific details will be fleshed out in due course, but in the meantime some of the key takeaways are highlighted below:
- Economy - the Office for Budget Responsibility (OBR) says public finances are set to be £27bn better off by 2020 than previously forecast due to a combination of better tax receipts and lower interest payments on debt.
- Tax Credits - the Government has scrapped plans to change tax credits and the current thresholds remain the same. Extra borrowing will make up the shortfall in the first few years of the parliament.
- Housing - from the 1st of April 2016 stamp duty will increase by 3% for buy-to-let and second home buyers.
- CGT Deadlines - from April 2019 disposal of a residential property which results in a capital gain will need to be paid within 30 days of the completion, as opposed to the current self-assessment payment deadline. Gains on properties not liable for CGT (i.e. those covered by Private Residence Relief) will not be affected.
- Digital Filing – by the end of the decade the Government has plans to move away from paper based self-assessments to a digital account for most businesses, self-employed individuals and landlords.
- State Pension - the new state pension will be set at £155.65 from April 2016.
- Small Business – small business rate relief has been extended for 12 months to April 2017.
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