The Summer Finance Bill 2015-16 received Royal Assent on 18 November 2015 to become the Finance (No 2) Act 2015. The Bill had a speedy passage through the House of Lords and the House of Commons and has now become an Act of Parliament.

The Finance (No 2) Act 2015 contains the legislation for many of the tax measures that have been announced by the Government. This includes the implementation of key government policies for business such as the reduction of the corporate tax rate to 19% in 2017 and to 18% in 2020 as well as the new permanent £200,000 Annual Investment Allowance and some changes to the VCT and EIS schemes.  The Act also implements the “tax lock” provisions that rule out any increases in VAT and income tax rates during this Parliament.

The Act also enshrines in legislation an increase in the personal allowance to £11,000 in 2016-17 and £11,200 in 2017-18 and in increase in the higher rate threshold to £43,000 in 2016-17 and £43,600 in 2017-18 as well as introducing the new main residence nil-rate band (RNRB). The RNRB will allow for a new £175,000 per person transferable allowance for married couples and civil partners when their main residence is passed down to children after their death. The allowance is being phased in from 2017-18.