Summer budget: key updates and guidance to share with clients
Guide to the Budget 2015 highlights the key announcements from the spring and summer budgets and can be used within your practice to help staff as well as shared with clients.
Key additions from the summer Budget include:
Property letting There were a number of announcements regarding property letting. You can see the wear and tear consultation elsewhere in this issue. Restricting finance cost relief for individual landlords was another significant potential change.
This measure will restrict relief for finance costs on residential properties to the basic rate of income tax. To give landlords time to adjust, the government will introduce this change gradually from April 2017 over four years.
Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.
Dividend taxation – all change from April 2016 The tax regime for dividends will change for 2016. This sees the abolition of the dividend tax credit, a dividend tax-free allowance and tax rates for dividend receipts.