The main measures announced in Budget 2015 affecting small businesses and individuals include:


Corporation tax

The main rate for corporation tax will be cut to 20% from April 2015.

National insurance

Businesses will no longer have to pay NICs for employees under-21 from April 2015. They will also be abolished for apprentices under 25 from April 2016.

Capital allowances

The Chancellor announced that the proposed reduction in the annual investment allowance from £500,000 to £25,000 after 31 December 2015 would be reviewed.

Tax simplification: the end of the tax return

The tax system will be transformed over the next parliament by introducing digital tax accounts to remove the need for individuals and small businesses to complete annual tax returns.

Business rates

Small business relief will be extended until April 2016. Inflation-linked increases to business rates will be capped at 2% until April 2016.

Travel and subsistence

Travel and subsistence relief will be restricted for individuals working through intermediaries such as umbrella companies from April 2016.


Farmers will now be able to average their income over 5 years for tax purposes from April 2016.


 Minimum Wage

The minimum wage will rise to £6.70 in the autumn, with the apprentice rate increasing to £3.30.


The lifetime allowance will be lowered from £1.25 million to £1 million from 6 April 2016 and will be indexed to increase in line with inflation from April 2018.


Annuity holders will be able to sell their retirement income at their marginal rate of tax from April 2016.

Income tax

The personal income tax allowance will be £10,600 in 2015/16.The threshold for the higher rate will increase to £43,300 in 2017/18.

Flexible ISAs

More flexible ISAs will allow people to take money out of their account and return it in the same year without losing any of their annual tax-free entitlement.

Help to Buy ISA

The Help to Buy ISA is designed to help first time buyers save for a deposit on their first property.

Personal savings allowance

The first £1,000 of interest on savings earned will be tax-free for basic rate taxpayers from April 2016.

Inheritance tax

The government will review deeds of variation for tax purpose