Budget 2015 Pre Election Giveaway

Budget 2015 Pre Election Giveaway.

Rumours are abundant both across the Internet and in national newspapers that the Chancellor, George Osborne looks set to make budget 2015 in part a giveaway budget as we approach the general election in May 2015.

In one report, we have seen some suggestions that the personal allowance, the starting point before we actually pay income tax on our income, will rise to £11,000 per person as early as next month i.e. sixth April 2015. In the last budget the personal allowance was confirmed to increase to £10,600 next month but perhaps the Chancellor has kept some money in his coffers to sweeten the electorate. The budget this year is on March 18 and as ever we will post full commentary and videos on this site as soon as the news breaks.

There is also potential for:

Inheritance Tax to be changed given that we have not seen the inheritance tax nil rate band threshold increase from £325,000.  There have been no changes since 2007 when the ability for a spouse to transfer unused nil rate band to the survibing spouse on death was introduced.  A proposed increase to £350,000 in 2010 was cancelled due to the recession and the commitement mad then was to leave the at £325,000 until 5th April 2015.  This may therefore be on the Chencellor's agenda.

Finally, whilst consulted on, it has not yet been confirmed that people will be able to cash in/sell in part or in their annuity.  We expect some news next week on this too.

Comment

Whilst we believe George Osborne has a fairly sensible head on him and will manage the budget accordingly, there must be temptation to offer a number of 'giveaways' given that the economy is strengthening, long-term debt is being repaid and of course, the Conservatives would like to win the election outright rather than as part of any coalition with the Liberal Democrats or the UK Independence party.