Insights

David Cameron has wasted no time in ensuring that his latest term in office is marked with significant changes. The recent Queen’s Speech outlined what taxpayers can expect in terms of new legislation over the coming year and there is more to come on July 8^th, with the summer Budget.

What policies were legislated?

1. Immigration – landlords must check the immigration status of tenants renting their properties.

At a glance facts

• Nationwide implementation of requirement for all residential landlords to check their tenant’s immigration status.
• Failure to comply could mean a £3,000 fine

2. Housing Bill – designed to make it easier for people to build or buy their own homes.

At a glance facts

• Gives 1.3m tenants living in housing association properties the right to buy their homes
• Councils have the ability to sell off higher-value properties to subsidise the cost of building new affordable homes
• Greater support for taxpayers wishing to build their own homes under the Right to Build scheme
• 200,000 discounted starter homes available for taxpayers aged under 40

3. Free childcare – more free childcare will become available to working parents with 3 to 4 year olds – funded by reducing pensions tax relief.

At a glance facts

• The amount of free childcare available to parents in England will increase from 15 hours a week to 30 hours
• This is available for 38 weeks of the year
• No details about when this will be commencing are available

4. Tax rates fixed – no increase to VAT, PAYE or NICs for 5 years

At a glance facts

• No rises to current income tax rates, VAT or national insurance before 2020
• Increases to personal allowance will reflect rises in the minimum wage
• Anyone working 30 hours on the minimum wage will be exempt from paying income tax

5. Pensions – earlier promises to increase the state pension will be honoured.

At a glance facts

Pensions have become very complicated with a range of new rules being introduced. This announcement protects the earlier pledge made by the former coalition government.

• State pensions will continue to increase in line with either inflation, national wage levels or 2.5 per cent – whichever is the highest
• Protection will remain until 2020.

Watch out for more tax news in RJP’s summer budget coverage, when we will be interpreting what the Chancellor’s policies mean for taxpayers.

For more information on tax planning please contact Lesley Stalker by emailing las@rjp.co.uk.