finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Budget 2015: Economic growth and tax breaks

The UK Budget 2015 in review

Posted: 18th March 2015 by
katinahristova
Share this article

POLITICS Green 125348George Osborne delivered his final Budget before the UK’s general election, with an upbeat message of economic growth.

According to the Chancellor of the Exchequer, the UK enjoyed the fastest growth in the G7 in 2014. Looking forward, Mr. Osborne has forecast that debt will fall as a share of GDP from 2015-2016, a year earlier than originally forecast in his Autumn Statement.

Taxes, duties and levies

Perhaps the biggest sea change in the Budget was the announcement that the annual tax return is to be abolished. Millions of individuals will have the information HMRC needs automatically uploaded into new digital tax accounts. Businesses will feel like they are paying a simple, single business tax – and again, for most, the information needed will be automatically received.

Tax-free personal allowance will increase from its current rate of £10,600 (€14,650) to £10,800 (€14,930) in 2016-17 and £11,000 (€15,210) the year after.

The increases to the personal allowance from £6,475 (€8,950) in 2010, to £11,000 (€15,210) in 2017-18 will save a typical taxpayer £905 (€1,250).

The 2015 Budget also confirmed that fuel duty will be frozen again; since 2011, the government has cut and frozen fuel duty, saving a typical motorist a total of £675 (€930) by the end of 2015-16.

Duty on alcoholic beverages are also being frozen - there will be a 1% duty cut off a pint, a 2% cut for spirits and most ciders, and a freeze on duty on wine.

The government is also increasing the rate of the bank levy (one of the taxes that banks pay) from 1 April 2015. This will raise an additional £900 million (€1.2 billion) a year.

Oil & Gas sector support

To encourage further investment in the North Sea, the government will introduce a new Investment Allowance and reduce the supplementary tax charge on oil and gas companies further, from 30% to 20%, from 1 January 2015.

The rate of Petroleum Revenue Tax paid on older oil and gas fields will also be reduced from 50% to 35%.

These changes are expected to increase oil production by around 15% by 2019, and drive £4 billion (€5.5 billion) of new investment over the next five years.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram