Scrapping of annual tax returns – a late announcement on Budget morning. Over a five year period ending in 2020, the annual tax return will be phased out in favour of a digital tax account. HMRC will gather taxpayers’ information from banks, pension providers, employers and other relevant sources, which in turn feeds into a single online account.
Pensions – Chancellor Osborne announced at the weekend that existing pensioners would be able to cash in their annuities from April 2015. This measure is expected to affect up to 5 million pensioners. Last year he announced over 55’s would be allowed to cash in their pensions savings rather than buy an annuity. There has been a good take up of pension bonds and we’re hoping to see the purchase deadline of 15 May 2015 extended.
Plans to build 45,000 homes per year were announced recently although this is still short of the supply needed by the UK’s fast growing population.
The personal tax allowance was previously set to increase to £10,600 but this was widely expected to be revised upwards to £11,000 from April 2015.
A major review of business rates is taking place although progress is said by many to be too slow.
The Chancellor has aired plans to restrict Child Benefit to three children for new claimants and also impose a welfare cap of £23,000.
We already knew about the Chancellor’s crackdown on corporation tax avoidance in international companies. Dubbed the ‘Google tax’, we’re hoping for more details outlining how the tax will work..