This afternoon, the Chancellor delivered his second Budget speech of 2015 – and the first of a wholly Conservative government for nearly 20 years. So what is in it and how will it affect you?
There were a number of consumer concerns mentioned, from inheritance tax to personal allowances.
Increased personal allowance
The measure that hit the headlines was the introduction of a new national living wage, starting at £7.20 an hour from next April.
And there was also the widely anticipated increase in the personal allowance – how much you can earn before you start paying tax. This will be up to £11,000 next year, and there is also a rise in the threshold at which people start to pay the higher 40p rate of tax – up to £43,000.
In a move that will be welcomed by many, the Chancellor increased the inheritance tax allowance.
From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.
The family home allowance will be added to the existing £325,000 inheritance tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.
So if you own a property that’s worth up to £1m, by 2021 you will be able to leave it to children or grandchildren completely free of inheritance tax.
Meanwhile if you are one of 220,000+ supporters of our Calling Time campaign – or one of those who have told us your stories of being plagued by nuisance calls – you’ll be interested in this one.
There is a new proposal to cap the amount that claims management companies (often behind the payment protection insurance or accident claims calls) can charge their customers. The idea is to try to reduce the number of nuisance calls you as receive as potential customers.
Over the next week, politicians and policy folk will pore over the details. But what do you think of the major announcements? Has the Government done everything it can to help you and your finances?