Taxbriefs Commentary Library

Summer Budget countdown - one week to go

Lindsay Brown, 01 Jul 2015


 

It is exactly one week until Chancellor George Osborne delivers his second Budget of the year and following the Conservatives’ election win, his announcements are even more significant this time around. What can we expect? Unfortunately we don’t have a crystal ball here at Taxbriefs, but there are rumours around what Mr Osborne is likely to be pulling out of his hat. Pensions are a hardy perennial in Budgets so look out for news in this area. For one, the Treasury has the pensions annual allowance for higher rate earners in its sights. We may also hear more about removing historic restrictions on pension transfers in a drive to help savers access the new pension freedoms.

Flexible pensions are attractive for many, but the government has faced criticism in recent weeks as pension savers have found it more difficult than expected to use the flexibilities. Earlier this month, the Chancellor announced that there will be a July consultation designed to “strengthen people’s rights to access their pensions flexibly” and remove any “unjustifiable barriers to doing so”.

Another rumour focusses on Mr Osborne potentially planning a higher rate tax cut. It looks like former Conservative chancellor Lord Lawson is urging George Osborne to slash the top rate of income tax to 40p in the Budget and the Treasury has reportedly considered the move. The point of this measure would be to signal a shift towards a “lower tax, lower welfare” economy, which brings us to the next point…

The Prime Minister and the Chancellor have expressed desire to make huge cuts to the welfare budget, with the latter promising to press ahead with this plan. It is likely that Mr Osborne will set out how these cuts will be made on 8 July.

Make sure you visit our Summer 2015 Budget pages to find out how Taxbriefs’ Budget summary and tax tables can benefit you and your clients. We are here to help so don’t hesitate to contact us.

 


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Lindsay Brown

Content Developer

Taxbriefs

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