Chages for 2015/16
We’ve broken the main bits of the budget down to show you how you might be affected by the changes in the 2015/16 financial year.
- Personal income tax allowance – the amount you earn before you have to pay tax, will increase to £10,800 in April 2016 and £11,000 in 2017.
- The annual tax return will be scrapped altogether. Instead, the information HMRC needs from employers, banks and pension providers will be automatically uploaded into new digital tax accounts.
- The transferable tax allowance for married couples will rise to £1,100.
- Your savings ISAs will become more flexible, enabling you to withdraw and replace your savings in the same tax year without affecting your tax-free allowance.
- A new personal allowance will mean 95% of us will no longer have to pay tax on our savings. From April next year, the first £1,000 of interest earned on your savings will be tax-free if you’re a standard-rate taxpayer. Higher rate taxpayers will get a £500 tax-free allowance.
- Brand new ‘Help to Buy’ ISAs will be introduced to help first-time buyers save for a deposit. For every £200 saved, the government will top it up with £50. The annual savings limit for ISAs will increase to £15,240
- The law will change in April 2016 to allow those who are trapped in annuities to cash them in so that they too can benefit from the pension freedoms announced in last year’s budget. The 55% tax charge for withdrawing funds will be abolished and the marginal tax rate will apply instead.
- The amount you can put into your pension over your lifetime will fall from £1.25 million to £1 million.
- Mental health services will be given a £1.25 billion boost.
- Loans of up to £25,000 will be available for postgraduate PHD and masters research students.
- The fuel duty increase scheduled for September has been cancelled.
Note: Whilst we take care to ensure Hub content is accurate at the time of publication, individual circumstances can differ so please don’t rely on it when making financial decisions. OneFamily do not provide advice so it may be worth speaking to an independent financial adviser about your own circumstances.