Budget 2016: A Summary

Posted: 17th Mar 2016 by Paul Morris Pensions, Taxation

What are the key changes to the Budget and how will they affect you?

Corporation Tax Rate to be cut to 17% from April 2020.

From April 2017, the new threshold for small business rate relief will increase from £6,000 to £15,000, and the higher rate will also be increased.

The personal allowance is to increase to £11,500 and the higher rate threshold to increase to £45,000 from April 2017.

From the 6^th April 2016, Capital Gains rates are to be cut from 28% to 20% for higher rate taxpayers, and from 18% to 10% for basic rate taxpayers. However, the new reduced rates do not apply to the sale of residential property.

Individuals will benefit from a new £1,000 allowance against Trading or Property income, to be introduced in April 2017.

The ISA limit will be increased to £20,000 from April 2017. Additionally, a new Lifetime ISA is to be introduced in April 2017 for those under 40.

Read our Budget Summary to find out more.

Claim your Free Tax Fairness Review

Hunter Gee Holroyd have launched a free “2016 Tax Fairness Review” initiative to prevent local taxpayers and businesses being drowned by the storm clouds identified in the small print of George Osborne’s Budget. Find out more