08 July 2015

Brewin Dolphin, one of the UK's leading wealth managers, said Chancellor George Osborne had today delivered a carefully thought-through Budget that balanced the need for spending restraint with measures designed to deliver economic growth. Responding to these key statements reforming the welfare system, extending the Inheritance Tax threshold reforming dividend tax, , Cut in Corporation Tax, Restricting tax relief for Buy-to-let landlords and Increasing the living wage.

Stephen Ford, Head of Wealth Management at Brewin Dolphin

"It is another "Budget for Growth and Business" that Brewin Dolphin broadly welcomes. The Chancellor has again walked the tight rope over the gaping political chasms of distinct and competing ideologies. Delivering a manifesto pledge on extending the IHT threshold and cutting perceived welfare state generosities wasn't going to be an easy task, yet by manoeuvring to deal with the wealthy segments of non-doms and landlords, and telling the world the UK is open for business with low corporation tax, he has safeguarded NHS funding and provided for a higher standard of living for those wanting to work. We will watch closely as the debate regarding long term savings in pensions and ISAs develop."

Nick Fitzgerald, Head of Financial Planning at Brewin Dolphin

"Whilst the well touted IHT change will be welcomed by the Tory voting electorate, paid for by restricting pension relief for high earners, Osborne dodged an opposition bullet by refusing (at this stage) to reduce the highest rate of income tax.

Cracking down on apparent inequalities in the non-dom and buy-to-let regimes, he hoped to demonstrate that the benefit cuts, which Civil Servants and policy advisers had prepared behind the scenes, were purposefully set-out. Free child-care and the National Living Wage were introduced to help those wanting to work, and small employers benefitting from reduced National Insurance, will be happy along with the wider business community, when corporation tax becomes the lowest in the G20.

We may have been able to wait until the Autumn Statement for these policy updates, but with a five year fixed Parliament, Osborne wanted to show he is on the ball, and clearly didn't want to waste precious months delivering his growth ideas.

Simon Blowey, Senior Financial Planner at Brewin Dolphin

"Osborne must enjoy this malarkey. Definitely more Summer Budget than Emergency, judging by some of the excitable MPs' behaviour, he set out five or six key policy changes, with IHT, non-doms, buy-to-let, pension relief, corporation tax and the welfare state, all jockeying for headline position in the morning papers. Indeed, the Chancellor seemingly hasn't had his appetite for pension evolution whetted enough yet. More far-reaching pensions and long term savings consultations to come. Yes, really.

So, pity the poor, tax evading, high earner contributing to pensions, having a few buy-to-let properties, considering applying for non-dom status, and enjoying chunky dividends who may be a little aggrieved, but grateful that least a Nil Rate Band extension has been given. Osborne has adopted a carrot and stick approach, helping those wanting to work and generating enterprise, and looking less favourably on others. As his Stamp Duty reforms took the wind out of Labour's sails last year, the opposition may feel peeved that he has capitalised on their non-dom curtailment too."

Charlotte Black, Head of Public Affairs at Brewin Dolphin

"As we expected a consultation on the future of pension incentives has been started. The Government forwent nearly £50 billion of tax reliefs and NICs in 2013 /14 and clearly they want to spread this sum more fairly among the mass affluent and the young - to encourage them to save too. "This is great - the opportunity to access good savings products continues to widen as more wealth management firms develop services for broader customer bases. But as well as tax incentives and simple and transparent products - there are two policy areas which need to be joined in and reformed to really achieve meaningful savings build up throughout this group. These are regulation to enable cost efficient advice services and financial education to understand it."

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change.

ENDS

Press Office:press@brewin.co.ukor 020 3201 3330

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