Here are the key points from today’s Budget…
Click here to find out here if you will be better or worse off…
How will these changes affect you?
Pay
- National Living Wage announced for over 25 year olds starting at £7.20 per hour next year and rising to £9 by 2020.
- Public sector – 1% pay rise
- Increase in personal allowance tax to £11,000
- Only those who earn over £43,000 a year will now pay 40p higher tax rate
Welfare
- Child Tax Credit – This will be capped at 2 children from 2017
- Housing benefit – This will be scrapped for 18 – 21 year olds
- Working age benefits – Frozen for 4 years
Tax
- Income tax – threshold raised to £11,000
- Corporation tax – 19% by 2017 then down again to 18% by 2020
- Inheritance tax – property threshold raised to £1 million for couples (or £500,000 per owner the property)
Other things you may want to know…
- Benefits cap to be reduced from £26,000 per household to £23,000 in London and £20,000 in the rest of the country
- Increase in defence budget
- NHS to receive additional £8bn per year by 2020 (in addition to the £2bn already announced)
- Social housing tenants earning more than £40,000 in London and £30,000 elsewhere to pay rent at market rates
- Working parents of three and four-year-olds will receive 30 hours of free childcare a week from 2017
- Pensions tax annual allowance to be tapered away to a minimum of £10,000 from next year
- Maintenance grants for students – paid to students with family incomes below £42,000 – to be scrapped and converted into loans from 2016/17
- Fuel duties frozen for the remainder of this year
- New cars and motorbikes will not need MOTs for the first four years, rather than three
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