The measures announced in the Summer Budget 2015 include:


Corporation tax – the corporation tax rate will be cut to 19% in 2017 and 18% in 2020.  Payment dates for large companies will be brought forward.

National Living Wage:

A compulsory wage for over 25s of £7.20 per hour will be introduced in 2016, rising to over £9 in 2020.


Dividend tax credit will be replaced by an annual tax-free allowance of £5,000.  Tax rates of 7.5%, 32.5% and 38.1% will be set for basic rate, higher rate and additional rate taxpayers on income from dividends.

Annual Investment Allowance:

The allowance will be £200,000 from 1 January 2016.

National Insurance:

The employment allowance will rise from £2,000 to £3,000 from April 2016.


Personal allowance:

The personal allowance will rise from £10,600 to £11,000 from April 2016.  The higher rate threshold will increase to £43,000 from April 2016.

Inheritance tax:

A £175,000 transferable threshold for residential property passed to children and grandchildren will be phased in from 2017.

Property tax:

Mortgage interest relief on buy-to-let property will be restricted to the basic rate of income tax.  This will be phased in over 4 years starting in April 2017.

The existing wear and tear allowance for furnished lettings will be replaced with a new relief that will allow residential landlords to deduct the actual cost of replacing furnishings from April 2016.

Rent A  Room Relief:

Rent-a-room relief will rise to £7,500 per annum from April 2016.


The permanent non-domicile status will be abolished from April 2017.


Pension contributions tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 per annum from April 2016.