14/07/15

Summer Budget Highlights for Personal Tax

Summer Budget Highlights for Personal Tax:

The Personal tax Allowance will rise to £11,000 for 2016-2017.

The rate before paying tax at 40% will rise to £43,000 for 2016-2017.

Buy to Let Landlords the mortgage interest relief is to be restricted to basic rate with the change to be introduced over 4 years from April 2017.

Finally there is a big shake up of the way the taxation of dividends will be treated.

Currently dividends are treated as having had 10% tax deducted at source.

From April 2016 everyone will receive the first £5000 of dividend income tax free and then above the £5000 you will pay at a new rate as follows:-

  • Basic Rate (20%) taxpayers will pay at 7.5%
  • Higher Rate (40%) taxpayers will pay at 32.5%
  • Additional Rate (45%) taxpayers will pay at 38.1% 

If you have any queries on how this will affect you, please give me, Emma Thomas, a call on 01803 202052 and I will be happy to discuss this with you.

 

 

14/07/15