Tax changes from 6 April
7th April 2015
The start of the new tax year on 6 April saw new tax and regulatory changes come into effect.
Here are the headline measures affecting businesses and individuals:
The income tax personal allowance is now £10,600. The personal allowance will rise to £10,800 in 2016/17 and £11,000 in 2017/18.
From 6 April, spouses and civil partners will be able to transfer up to £1,060 of their personal allowance to their partner. More than 4 million eligible married couples and 15,000 civil partners will be able to save £212 a year.
As announced during Budget 2014, the interest tax on savings up to £5,000 will be abolished. This will mean that from 6 April, people earning less than £15,600 each year will no longer have to pay the 10% tax.
The government estimates that this will remove tax on savings for 1.5 million people.
Tax on inherited pensions
The 55% tax charge on inherited pensions will be abolished meaning that unused pension contributions can be passed to the beneficiary free of tax.
National insurance contributions (NICs) for under-21s will no longer be mandatory. Employers hiring care and support workers can claim NIC deductions of up to £2,000.
The annual ISA allowance will increase from £15,000 to £15,240 and the threshold for Junior ISAs and child trust funds will rise from £4,000 to £4,080.
Capital gains tax
The CGT annual exemption is rising from £11,000 to £11,100.
Contact us to discuss how these changes affect your business and personal financial planning.