Summer Budget 2015: A 500-word summary for the UK business community
3 min read
08 July 2015
With chancellor George Osborne at the speaker’s box for around 75 minutes, Real Business has condensed his near 10,000-word speech into 500 words for your reading convenience.
New apprenticeship levy
To create a further three million apprenticeships by 2020, the government will introduce an apprenticeship levy, which will see employers training young people in the right way get back more than is put in.
Extended Sunday trading
Following a trial during the 2012 London Olympics, larger retailers will now be able to stay open an additional two hours on a Sunday in a response to research that has determined transactions for Sunday shopping are actually growing faster than those for Saturday.
New roads fund
As part of the government’s new productivity plan, all capital raised in Vehicle Excise Duty in England will go into the Road Fund to pay for the sustained investment in the UK’s roads.
New tax avoidance measures
Bringing together the General Anti-Abuse Rule and the non-domicile tax status, non-coms with residential property in the UK will no longer be able to put it in an offshore company and avoid inheritance tax. Anyone resident in the UK for more than 15 of the past 20 years will now pay full British taxes on all worldwide income and gains.
Read more of our Summer Budget commentary:
- UK business world reacts to George Osborne’s speech
- Frankie Boyle claims George Osborne is a Lannister and that emergency Budget has no humanity
- George Osborne’s speech in full
Corporate tax rules
For companies with profit over £20m per annum, corporation tax payments will be brought forward – closer to the point at which profits are earned. This is in line with what is common practice in G7 countries, and will remove the annual deduction for acquired reputational value.
Clarification on Annual Investment Allowance
Having yo-yoed for many years, and set to return to £25,000 by the end of 2015, the Annual Investment Allowance will be set at £200,000 for the foreseeable future. This is hoped to be of particular attraction for businesses in the manufacturing and agriculture sectors.
Northern Powerhouse plans
On the back of creating Transport for the North, a new £30m of funding has been allocated to the body to connect northern England though an “oyster-style” ticketing system. An agreement has also been reached to devolve powers to Greater Manchester, on the proviso that a directly-elected mayor is established.
Corporation tax cut
With the Conservatives having overseen a cut in corporation tax from 28 per cent to 20 per cent, it will now fall to 19 per cent in 2017 and 18 per cent in 2020. It is hoped this will create more jobs and encourage more investment into the UK.
National living wage hike
Starting from April 2016, the minimum wage for those aged over 25 will be £7.20, with the Low Pay Commission having a say in any future rises. The government has plans for the minimum wage to be £9 by 2020.