The Budget 2015 – Summary

Summary of Budget Held on 18th March 2015

The Chancellor announced that the government intends to abolish the need for annual tax returns, with individuals and businesses managing their tax affairs on-line through a “digital tax account”.

The main budget proposals were as follows:

  • An increase in personal allowances over the next two years
  • A new Personal Savings Allowance
  • Introduction of a First Time Buyers ISA
  • Greater flexibility with pensions, but a reduction in the lifetime maximum
  • Promise of a review of business rates
  • Changes to the conditions attached to Entrepreneur’s Relief

Other changes announced in the budget included:

  • Changes to the Gift Aid Small Donations Scheme
  • Changes to the VAT reclaimable by certain charities
  • Tougher measures to counter tax evasion and avoidance

Due to the imminent general election it is important to realise that:

  • These proposals will be rushed through Parliament with very little debate in order to get them into law before the election
  • There is a possibility of a second budget after the election which could alter or reverse all or any of the above.