Summer Budget 2015 – Our Views

We may have had a Budget in March, but George Osbourne is gearing up for another. Significant changes are predicted, as the Conservatives, unrestricted by the Liberal Democrats, put their election manifesto into action.

 How could this effect you?

For higher-rate tax payers, it may be worth bringing forward planned pension contributions to before the Summer Budget on July 8th 2015, to benefit from current tax relief rates, as some believe there will be a reduction in the 45% tax relief for those earning £150,000 and over.  Additionally, there is speculation that restrictions could be placed on carry- forward rules. With tax relief on pension contributions costing the Treasury £34 billion a year, such reductions are hardly surprising, particularly as the Chancellor has guaranteed no increase to other core elements of the tax system.

Anything else?

The summer Budget after the 2010 General Election saw an increase in the rates of capital gains tax (CGT), and whilst any increase in Income Tax, NIC or VAT has been ruled out until 2020, there was no mention of capital gains. With capital gains rates currently significantly below the top rates of income tax, a repeat of 2010 could certainly be on the cards. So if you have been contemplating a disposal, it would be wise to do so before July 8th.