Summer Budget 2015

EarthRod

I wonder what Osborne has in mind on the 8th July besides a shake-up of the Sunday trading laws and capping benefits?

Member 581642

IHT reform

tapzilla2k

Increasing social housings rents by up to £70 to make them closer to market prices in the private rental sector. I'm sure that will work out splendidly well.

EarthRod

Well, this is the first Tory budget since... er... 199-something.

The IHT threshold will increase to £1 million for couples from 2017. The 'family home allowance' is £175,000 per person on top of £325,000 tax-free allowance. So assets worth up to £500,000 (including a house) will not be liable to IHT.

About 340,000 people who live in housing association and local authority properties (subsidised) on incomes of more than £40,000 in London and £30,000 in the rest of England will start paying market-price rents from 2017.

It's on the cards the main sickness benefit (Employment and Support Allowance) could be scrapped.

The public sector will get it in the neck again - about £30 billion will be cut from government departments.

tapzilla2k

I think they want to scrap the work related activity group, which means a reduction of £30 and closer to JSA. So they might scrap it entirely I guess. If they do, they are a bunch of....

fluxo

Is that tapered in? I mean, wouldn't it strongly disincentivize earning more if you are near the threshold? Could be viewed as thwarting the ambition of those in social housing who wish to better themselves.

EarthRod

Those over the threshold will have their subsidy cut completely.

That's what the news websites say, but Osborne might say something different tomorrow.

fluxo

Is "subsidy" the correct word?

I have no idea what the amounts involved are, but hypothetically you could be thousands of pounds worse off if you earn an extra penny.

EarthRod

1. Might not be. I thought it is 'Subsidised Housing', that's why I used the word 'subsidy'.

2. That is true - just like income tax.

Cliff

I might be wrong but what I understood from the news reports was that the house component will be treated separately, and you will be allowed up to £1m (joint). Idea being that the house does not have to be sold, which could have devastating consequences for those who have not flown the nest.

So if you only have savings of a million then that will be taxed. And there has got to be some  small print because, its unfortunate reality that many have to sell their house to pay for care. If you pop off  10 minutes after selling the chancellor has got you!