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Our first Budget Seminar held at the Theatre Severn the day after the Budget was a great success, with over 70 guests joining us for breakfast, tea and coffee.
Tony Elliott and Pam Mason from our Tax Planning Team presented a detailed analysis of the Budget, providing guests with an update on all the topical tax issues.
To summarise the key highlights from the Chancellor's speech were:
- Good news for farmers, they will be able to average their profits over 5 years rather than 2 years to iron out fluctuations in profit
- The amount you save in your pension pot is to be cut from £1.25m to £1m but from 2018 the lifetime allowance will be index linked
- Some change in the small print for Entrepreneurs Relief. The company must be a genuine trading company and for associated disposals the seller must also sell at least 5% of the shares in the company. This has never been specified previously
- Employment allowance will remain in place and NIC will be abolished for under 21's and Class 2 NIC will be abolished in the next Parliament
- A consultation process is to be set-up regarding Deeds of Variation in connection with varying a deceased's Will. This came under the tax avoidance umbrella
- Annual Investment Allowance is due to revert back to £25k at the end of December, the Chancellor hinted that this may not happen but he did not quote any figures
- Self Assessment Tax Returns will be abolished and replaced by a digital tax account on HMRC's website. This will be next year and will enable tax to be updated/paid at any time of the year rather than January
- Petrol duty increase has been cancelled leaving the Chancellor to say "£10 off a tank with the Tories"
- Personal Tax Allowance will increase to £10,600 from April 2015, £10,800 2016/17 and £11,000 2017/18
- Flexible ISAs - You will be able to take money out of an ISA an dput it back in again without losing the tax free benefit. This will come in from Autumn
- Help-To-Buy ISA for first time buyers. For every £200 you save the Government will contribute £50. This will start straight away
- Personal Savings Allowance - From April next year the first £1,000 of savings interest for basic rate tax payers will be tax free. For higher rate tax payers it will be £500 tax free