8th July 2015 at 4:15pm
The Summer Budget 2015
Here’s what you need to know about changes to savings, pensions and tax.
The good news is most of us will keep more of our income and pay less tax from next April.
The tax-free personal allowance, currently £10,600, will go up to £11,000 and fewer of us will pay higher rate income tax at 40%.
There weren’t any big changes to ISAs with the annual savings limit staying at £15,240. The inheritance tax-free allowance is set to gradually go up to £1m for some couples with children or grandchildren, from 2017.
We do expect more changes to pensions from April next year which could affect you if you earn more than £150,000.
We cover these in more depth in our Summer Budget 2015 blog.
Here are the headlines on savings and tax changes from the Budget.
Most of us will keep more of our income and pay less tax from April next year – the main tax free allowance is going up to £11,000 next year and fewer of us will pay tax at 40%.
Bank and building society interest is also paid tax free from April next year, making life easier and less taxing.
There weren’t any further big changes to ISAs. The savings limit went up to £15,240 in April and you can use that for cash, stocks and shares or a bit of both.
Inheritance tax will change from 2017. The tax free allowance will gradually go up to £1m for some couples.
If you’re a landlord, you won’t get such generous income tax breaks from 2017.
And we do expect some changes to pensions from April next year. If you earn more than £150k, it means the tax man won’t pay as much into your pension but your pension could still potentially grow tax free.
For more Budget 2015 insights, watch for updates on our News and MoneyPlus Blog at www.standardlife.co.uk