Budget 2016

Firm Comments Off on Budget 2016

Pitched as a “Budget that puts the next generation first”, George Osborne’s speech contained a number of announcements aimed at helping people save for the future.

For businesses, measures included changes to business rates and the abolition of class 2 national insurance contributions for the self-employed.

And, as we’ve come to expect from such occasions, there were a few surprises too.

The following report summarises the announcements made by Chancellor George Osborne during the Budget 2016 on 16 March 2016. For a copy of our full Budget 2016 report please see our Client Area or contact vicki.h@bwm.co.uk

Corporation Tax
The rate will be reduced to 17% by April 2020.

Business Rates
The small business rate relief threshold will rise to £15,000 from £6,000 in April 2017.

Stamp Duty
The way stamp duty is applied to commercial properties will change to a marginal rate system.

Class 2 national insurance contributions for the self-employed will be abolished from 2018.

Tax-Free Allowances
There will be £1,000 allowances on goods and services and property income from April 2017.

Personal Allowance
The personal allowance will rise to £11,500 from April 2017.

Lifetime ISA
Those aged under 40 can save up to £4,000 a year and receive a 25% government bonus from April 2017.

The annual ISA allowance will increase to £20,000 from April 2017.

Fuel Duty
Fuel duty will remain frozen.

Alcohol Duties
Duty on beer, cider and Scotch whisky will remain frozen this year.

Capital Gains Tax
Capital gains tax will reduce from 28% to 20% from April 2016.

Sugar Levy
A sugar levy will be placed on the soft drinks industry from 2018.

Insurance Tax
Insurance premium tax will increase by 0.5%.

Stamp Duty
Additional property rates will also apply to large investors from April 2016.

There will be widespread investment in road and rail networks