Our Comprehensive Summer Budget 2015 Review

The first Conservative Budget for nearly two decades set out plans to cut welfare spending, commit to not raising income tax, National Insurance or VAT for the lifetime of this parliament, boost the minimum wage and ‘keep moving us from a low wage, high tax, high welfare economy; to the higher wage, lower tax, lower welfare country’.

The Living Wage, which starts at £7.20 next April and rises to £9 an hour by 2020, will be compulsory and replaces the minimum wage which is currently £6.50.

As previously announced, there will be an increase in the inheritance tax threshold to £1m for married couples by 2017.

The crackdown on tax avoidance continues to be a dominant theme including announcements to clamp down on tax advantages for non-UK domiciled individuals, landlords with residential property and disguised employment.

The announcements that the annual investment allowance is to be made permanent and that the corporation tax rate will be lowered to 19% in 2017 and 18% in 2020 signalled ‘Britain is open for business’.

Our detailed comments are set out in the summary below. I hope you enjoy our analysis and if you want to talk through any of the detail you can speak to one of the team.

OMB/Entrepreneurs

Private Client

Employment

Compliance

Anti-avoidance

Other