Wednesday 8th July brings us the first all-conservative budget since 1997, when Chancellor George Osborne will announce his fiscal plans which will put into practice the Conservative General Election manifesto.
So what can we expect from this week’s budget? Here are the six things that we know will be announced:
1. The inheritance tax threshold to increase £1million for couples from 2017. This new “family home allowance” will be worth £175,000 per person and will come on top of the existing £325,000 tax free allowance . It will mean that the estates of individuals who die and pass on assets worth up to £500,000, including a home, will be charged no inheritance tax at all.
2. The BBC will be expected to take on the £650 million-a-year bill for providing free television licences for the over 75s by making cuts to its own budget
3. Some 340,000 local authority and housing association tenants on incomes of £40,000 or more in London and £30,000 in the rest of England will be told that from 2017/18 they will have to pay a market, or near market, rent
4. The benefits cap per household will fall from £26,000 to £23,000 in London – but will fall further to as little as £20,000 in other areas of the UK where the cost of living is less
5. Britain’s benefits bill will fall by £12billion over the next two years. George Osborne, the Chancellor, said he had “found” the savings, such as limited child tax credits to two children
6. A further clampdown on wealthy individuals claiming ‘non-domicile’ status – meaning they do not have to pay tax on their offshore earnings – as part of a £5billion clampdown on tax avoidance
As always, Green Lantern will be updating on pertinent points throughout the budget using our social media platforms, and will be publishing a budget summary later in the week.
If you have any questions on how the budget may affect you, please give us a call on 0207 164 2116.