Tait Walker - Chartered Accountants Logo

Summer Budget – what it means for employees

Chancellor's red budget box

Summer Budget – what it means for employees

Today’s Budget saw some good news for employees with an increase in the tax-free personal allowance, as well as an increase in the higher rate income tax threshold.

In a change from predictions, the Chancellor did not mention salary sacrifice. However, it has been stated that those earning £150,000 will have their annual tax-free pension allowance tapered from the current limit of £40,000 per year to a minimum of £10,000. This impacts significantly on retirement and tax planning and further highlights the need for comprehensive financial planning.

In addition, dividend tax credits have been replaced with a tax-free allowance of £5,000 for all taxpayers. This is good news for Pension & ISA savers as their funds remain exempt from the changes and will remain tax-free.

From 2017 there will be an additional £175,000 inheritance tax allowance for properties on top of the current £325,000 standard allowance, supporting those who wish to leave their homes to their children and grandchildren. This relief will taper for those with estates of more than £2m, so now is the perfect time to consider Inheritance Tax Planning.

 

Tait Walker Wealth Management is a trading style of Tait Walker Financial Services Limited which is authorised & regulated by the Financial Conduct Authority.

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedIn