Budget 2015 - A budget of no consequence.

JasonLVC

LOTS of heckling from Tories. Deputy Speaker not taking any crap, as usual!

michaels

JasonLVC wrote: »

Milliband is right to ask why no mention of the NHS in the speech.

Perhaps the Tories are keeping their powder dry for announcements in the manifesto / during the campaign?

michaels

chewmylegoff wrote: »

The budget was dull.

Milliband's response is rambling nonsense, I think he has forgotten what he is supposed to be doing.

As we know from this forum, surely the best response to a populist budget is to play the man with pre-prepared soundbite jokes rather than the ball (the shape, colour and size of which has only just been revealled)?

JasonLVC

michaels wrote: »

Perhaps the Tories are keeping their powder dry for announcements in the manifesto / during the campaign?

Yes, it does sound like keeping the extra special powder keg, dry.

JasonLVC

Sorry, I missed a bit about pension changes...


"For many an annuity is the right product, but for some it makes sense to access their annuity now.
So we’re changing the law to make that possible.
From next year the punitive tax charge of at least 55% will be abolished. Tax will be applied only at the marginal rate.
And we’ll consult to ensure pensioners get the right guidance and advice."

Graham_Devon

Thanks for the updates Jason

Jason74

JasonLVC wrote: »

There used to be mortgage interest relief many years ago and so its not unusual for government to assist in this sector.


Whether £50 is enough or the solution to the problem is another argument altogether.

I don't see it as any part of any solution to anything. It's part of the PROBLEM that the government seems to see peoples ability to meet house prices as the problem, rather than the house prices themselves, and then spends public money on this basis

fc123

JasonLVC wrote: »

New ISA's.




Also, a Help To Buy ISA.

For every £200 saved, government will top up with £50 more. So if you put in £12,000, government will put in £3000


That's quite a big thing!!

Did anyone hear about a limit on it? It must have a cap but can't see it reported anywhere.
I am sure mu SIL in NZ saves in a similar sounding scheme as she has a savings account that can only be used as a house deposit.

kabayiri

I can speak from recent experience working with ISA suppliers.

They are all looking for new 'headline' products; much greater focus on flexibility for example.

It's hard to compete for business when base rate is so low. A 1% workaday ISA doesn't set anyone's heart racing.

I think this announcement helps providers.

jamesd

fc123 wrote: »

Did anyone hear about a limit on it? It must have a cap but can't see it reported anywhere.
I am sure mu SIL in NZ saves in a similar sounding scheme as she has a savings account that can only be used as a house deposit.

Budget 2015 page 58: "1.228 In recognition of the impact the low interest rate environment has had on the ability of first time buyers to get on the housing ladder, Budget 2015 announces the Help to Buy: ISA. This will reward people that are making the difficult choices required to save regularly, and help them realise their aspirations of homeownership for the first time. The scheme will work by providing a government bonus to each person who has saved into a Help to Buy: ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings. Savers will have access to their own money and will be able to withdraw funds from their account if they need them for another purpose but the bonus will only be made available for home purchase. Further details are provided in the document ‘Help to Buy: ISA’."

There's a Help to Buy ISA factsheet.

Also from April 2016 Banks and building societies will no longer deduce 20% income tax on savings, in part because the personal savings allowance makes the first £1,000 of interest tax free.

"1.222 In a radical reform to the savings tax system, a new Personal Savings Allowance will be created from April 2016, exempting the first £1,000 of savings income from any tax for basic rate taxpayers and the first £500 for higher rate taxpayers, saving up to £200 off an annual tax bill. This will not apply to additional rate taxpayers."

"1.224 Because so many people will no longer pay tax on their savings, the automatic deduction of tax by banks and building societies will no longer be necessary. At present, 20% Income Tax is automatically deducted from most interest on savings outside ISAs. For those on low incomes, a 0% rate is applied, but only for those who have filled out a form to confirm they are eligible to receive gross interest. Higher rate taxpayers owe 40% tax and are therefore required to notify HMRC of their savings income so they can pay the additional 20%. Both the opt out and the requirement to notify HMRC are complex, burdensome and poorly understood. Budget 2015 announces that the automatic deduction of 20% income tax by banks and building societies on non-ISA savings will cease from April 2016. These changes represent a major tax simplification."