Tomorrow Chancellor George Osborne will give his annual budget speech. Some of the biggest changes that we already know about are:
Income tax
The point at which any income tax starts to be paid – known as the personal allowance – will rise by £1,000 to £7,475.
The Institute for Fiscal Studies (IFS) estimates that 500,000 people will no longer pay income tax owing to this change.
But the IFS also estimates that 750,000 people will become higher rate taxpayers, because the basic rate limit will fall from £37,400 to £35,000.
The tax rules will be tightened for those who have furnished holiday lettings. In particular, losses cannot be offset against other income in the same tax year
National Insurance
The government is increasing the main rate at which National Insurance is charged. This employee contribution rate for those who qualify is rising from 11% to 12% and employer contribution rate from 12.8% to 13.8%.
Companies
The main rate of corporation tax will fall from 28% to 27% on 1 April, with more reductions to come in subsequent years. The small companies’ rate will fall from 21% to 20% on the same day.
Also on 1 April, the rates of landfill tax, aggregate levy, and climate change levy will increase.
Housing
A new stamp duty rate of 5% will be charged on residential property purchases of more than £1m.
Savings
The annual Individual Savings Account (Isa) limit will rise from £10,200 to £10,680, or £5,340 for a cash-only Isa. Half, or all, of the Isa total can be saved in stocks and shares.
Pensions and benefits
Pension contributions that qualify for tax relief will be reduced to an annual allowance of £50,000 instead of the previous limit of £255,000.
Tax relief for employer-supported childcare will not be available to high-earners who start to receive the benefit on or after 6 April.
Universal child benefit will be frozen for three years from April, at £20.30 for a first or only child and £13.40 for each other child.
Changes to the thresholds in the tax credits system will see payments reduce faster as income rises.
