In a month's time, the Chancellor is due to deliver his second financial statement in one year during an emergency Budget on 8th July.
It may only seem like yesterday that Osborne delivered his 2015 Budget. However, the policies that were announced in March were devised by the coalition government. Therefore, following their majority win last month, the main purpose of the Budget will be for the Conservative party to take the reins and turn "promises made in the election into a reality".
What can we expect?
- A pledge to remove the family home from Inheritance Tax, which will increase the threshold from £650,000 per married couple to £1m.
- David Cameron has promised to preserve the 'triple lock' under which the State Pension increases by at least 2.5% every year through the guarantee.
- An increase in the personal allowance to £12,500 by 2020, up from £10,600 currently. There may also be a more concrete indication of the Chancellor's intention to raise the 40% tax threshold to £50,000.
- Following the pension reforms, the Chancellor could clarify their plans to allow pensioners to sell their annuities, which could come into force as early as April 2016.
- Plans to reduce the current generous tax relief for those who earn more than £150,000.
- It has already been announced that the Lifetime Allowance, which is a limit on the amount of pension benefit that can be drawn from pension schemes, will drop to £1m as of April next year.