Summer Budget 2015
On 8 July 2015, Chancellor George Osborne delivered the first budget in 18 years under a majority Conservative Government and our Technical team has summarised the main announcements affecting pensions, employee benefits and general taxation. The announcements also included a consultation on reforming pensions tax relief in the future.
The Government kept to the promise it made in its election manifesto to raise the Inheritance Tax threshold. However, to pay for this, it has introduced a ‘Tapered Annual Allowance’ for those earning over £150,000 in a tax year so that the Annual Allowance reduces to a minimum of £10,000. To help the Tapered Annual Allowance work as intended, transitional rules for pension input periods (PIPs) will apply from 8 July 2015. All PIPs open on 8 July 2015 are closed with immediate effect and the next PIP will run until 5 April 2016, so aligning all PIPs with the tax year from 2016/17. Individuals will have a one-off £80,000 Annual Allowance for 2015/16.
To download our Technical team’s summary, click here.