For Households:
As one would expect so close to an election, the focus of his largesse was on households in two main forms:
First, the personal income tax allowance, already schedule to rise from £10,000 to £10,600 in 2015-16, will rise further to £10,800 the following year and then to £11,000 in 2017-18. Second, life will be made easier for savers. A new personal savings allowance of £1000 will be introduced in April 2016 (£500 for higher rate taxpayers).
In addition, a new Help to Buy ISA for first-time home buyers will see the government add 25% to their savings up to a limit of £12,000 savings, i.e. a maximum government contribution of £3,000. Further, money saved ina cash ISA can be withdrawn and then replaced within the same tax year without losing its tax-free status.
For industry:
The main measure was emergency tax relief for North Sea oil and gas producers as widely expected. There will be a new Investment Allowance, the Supplementary Charge will be cut from 30% to 20% and Petroleum Revenue Tax will be cut from 50% to 35%.
