The UK government has indicated that a second set of budget proposals will be announced on 8 July 2015. This follows the recent election of 7 May 2015. The budget would clarify the expected government expenditure reductions and how they are to be funded. The Chancellor is focusing on making the UK economy more productive and raising living standards.
Promises made before the election indicated that there will be no increase in the rate of VAT, the basic rate of income tax or national insurance contributions. As the government is dedicated to maintaining the UK as a favorable environment for doing business and to have the most business-friendly regime in the G20 the corporate tax rate is unlikely to increase. A promise was also made to increase the inheritance tax (IHT) nil rate band to GBP 1 million in the case of home owners to prevent them from being subject to IHT on their homes up to that value.
