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Main 2015 Budget Announcements

Main 2015 Budget Announcements
  • New Compulsory National Living Wage introduced next year rising to £9 per hour by 2020, will start at £7.20 an hour (11% rise) from next April.
  • Tax free personal allowance will increase to £11,000 income tax
  • The £26,000 cap on benefits will be reduced to £23,000 in London and £20,000 outside the capital.
  • Child tax credits will be limited to two children from 2017 for new claimants
  • Student Maintenance Grants will be replaced with Loans from 16/17 academic year for new students. Total of £8,200 available, paid back once you start earning £21,000.
  • Corporation tax to be cut to 19% in 2017 & 18% by 2020
  • Mortgage interest tax relief to be limited on buy-to-let
  • Vehicle Excise Duty (VED) (also known as vehicle tax, car tax and road tax) will be used to fund a new ‘road tax fund’ which will be put towards maintaining roads!
  • Inheritance tax threshold will be increased to £1m from 2017
  • Working-age benefits to be frozen for four years – including tax credits and local housing allowance
  • Rents in social housing sector will be reduced by 1% a year for the next four years
  • 18-21-year-olds will not be entitled to claim housing benefit automatically, with a new “earn to learn” obligation
  • £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
  • A consultation will take place on changing Sunday trading laws
  • Higher rate 40p tax threshold will rise to £43,000 from £42,385

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