Goldwyns News

The general election is now over and a new government installed, and subsequently a second budget was presented by George Osborne on 8 July.

Our Second Budget 2015 booklet detailed the various announcements and their impact, including a couple of key issues which warrant further consideration. The existing 'smoke and mirrors' 10% dividend tax credit system is being revoked from 6 April 2016 and, consequently, for most owner-managed businesses the tax savings arising from dividend income extraction will be reduced, although not eliminated entirely in most cases. For some this could present a significant additional tax cost.

Furthermore, having meddled with the Annual Investment Allowance limit a number of times over the previous budgets the AIA available for certain capital costs has now been fixed at £200,000 with effect from 1 January 2016, which is much better than the expected reduction to £25,000. Although this does represent a sizeable decrease from the existing £500,000 limit it should remain a useful relief for most small to medium sized businesses in the future.

As always, if you have any questions or concerns arising from the Second Budget or any of the articles contained herein please do not hesitate to contact us. We would be happy to discuss any individual circumstances further.

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