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Summer Budget 2015: Personal finances

Chancellor George Osborne has now delivered his Summer Budget 2015.

Here's our summary of the key measures affecting personal finances:

Personal taxes

  • The personal allowance will rise from £10,600 to £11,000 next year.
  • The higher rate threshold will rise from £42,285 to £43,000 next year.
  • The £325,000 inheritance tax threshold will be fixed until 2020/21.

Property taxes

  • Mortgage interest rate relief for landlords will be restricted to the basic rate of income tax. This will be phased over 4 years starting in April 2017.
  • Rent-a-room relief will rise to £7,500 next year.
  • A £175,000 transferable inheritance tax allowance will be introduced for residential properties worth under £2 million from 2017.

Non-domiciles

  • The permanent non-domicile tax status will be abolished from April 2017.

Pensions

  • Pension tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 from 2016.
  • The government will start discussions into proposals to tax pensions in the same way as ISAs.

Tax lock

  • The government will legislate for a tax lock on VAT, income tax and national insurance increases during this Parliament.

Duties

  • New vehicle excise duty bands will be introduced from 2017 for brand new cars. Zero emission, standard and premium bands will follow after the first year, which will continue to be set according to emissions.
  • The freeze on fuel duty will be maintained.

Childcare

  • Working parents of 3 to 4 year-olds will receive up 30 hours of free childcare a week from September 2017.

See our other stories for measures affecting business finances and a round-up of other announcements.