Last month’s unexpected election result has been followed by the not so unexpected announcement of a second 2015 Budget. Quite what it will be about is unclear for now – the Treasury’s press release gave little more than the date.
In terms of what was in the Conservative manifesto on tax, there are two measures that could be fleshed out next month that were not mentioned in the March Budget:
- More changes were proposed to the pension annual allowance. The manifesto suggested that for those with income of over £150,000, the allowance would be reduced by £1 for each £2 of excess income, subject to a minimum of £10,000 if income exceeds £210,000.
- The cut in the annual allowance was intended to fund a new main residence inheritance tax allowance of £175,000 transferable between spouses and civil partners on gifts to children or grandchildren. The allowance would be phased out for estates above £2 million, again at the rate of £1 for each £2 excess.
Of course, manifesto pledges often change form on their way to statute, so there is still considerable room for manoeuvre in the weeks and months ahead. For more Post-Budget updates, please keep an eye on our Latest News web page.
The value of tax reliefs depends on your individual circumstances. Tax law can change. The Financial Conduct Authority does not regulate tax advice.