The Budget 2015: key points

The big announcements in today's speech.

Here’s a roundup of the main points Chancellor George Osbourne announced in his final budget before the General Election.

Savings

Introduction of Flexible ISAs that allow you to take money out and put it back in later without losing their tax-free entitlement.

Introduction of Help to Buy ISA for first-time buyers. Government will top up every £200 saved for a deposit with an extra £50 from autumn.

The first £1,000 of interest earned on savings will be tax-free with a a new personal savings allowance from April 2016.

Pensions

Law will be changed to allow the five million pensioners who have already bought an annuity to access their cash, with 55% tax charge scrapped and tax applied at marginal rate.

Pension lifetime allowance will be cut from £1.25 million to £1 million from next year, saving £600 million a year.

Income tax

The tax-free personal allowance threshold will rise from £10,000 to £10,600 in April 2015, rising to £10,800 in April 2016 and £11,000 by April 2017.

Higher rate threshold to get above inflation rise from £42,385 this year to £43,300 by 2017/18. 

Transferable tax allowance for married couples to rise to £1,100.

Charities will be able to claim automatic Gift Aid on the first £8,000 of small donations up from £5,000.

National Minimum Wage

The National Minimum Wage will rise by 20p from October 2015 taking the hourly rate to £6.70. The Chancellor said the minimum wage was on course to be over £8 by the end of the decade.

Earn up to 5% from a current account

National Insurance

Employers' National Insurance for under 21s to be scrapped from April 2015 and for young apprentices from April 2016.

Class two National Insurance contributions for self-employed to be abolished in next Parliament.

Annual tax returns

The annual tax return is to be scrapped in favour of a new digital account which can be checked anytime, by 2020.

Duties

Fuel duty increase scheduled for September will be cancelled.

Duties on tobacco and gaming unchanged.

The duty on beer will be cut by 1p. Duty on spirits and ciders to be cut by 2% but wine duty frozen.

Tax avoidance

The bank levy will be raised to 0.21% to raise an additional £900 million a year. Plus banks to be stopped from deducting compensation for mis-selling from Corporation Tax.

Review of deeds of variation to avoid Inheritance Tax by the autumn.

New rules to prevent contrived loss arrangements, use of foreign branches to reclaim VAT, umbrella companies and ensure entrepreneurs relief only available to those selling genuine stakes in businesses.

Corporation Tax

Will fall to 20% from this April

Earn up to 5% from a current account

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