Budget 2016 – Highlights

by | Mar 16, 2016

A Budget for small business…..

Below are the highlights from today’s Budget.  Our team are currently reviewing the Chancellor’s speech in greater detail and we expect to issue our full Budget 2016 briefing in the early hours of tomorrow morning. 

In brief….

Personal Tax

The tax free personal allowance will increase to £11,500 next year

The higher 40% rate threshold will increase to £45,000.

Fuel duty will be frozen for a sixth year in a row. 

Duty frozen on beer, cider and whisky.

Tobacco duty will rise by 2% above inflation from 6pm with hand-rolling tobacco up by an additional 3%.

Business Tax

Sugar tax

The Chancellor announced plans to introduce a sugar levy on the soft drinks industry.  This will be assessed by volume and introduced in 2018. This “tax” is expected to raise £520m each year and the proceeds will be spent doubling funding for sports in primary schools.

Corporation tax will be cut to 17pc by 2020.  Currently 20%

Capital gains tax cut from 28% to 20% for top rate taxpayers, and from 18% to 10% for basic rate taxpayers. (Residential property will still be taxed at current rates).

New threshold for small business rate relief will increase from £6,000 to £15,000, and higher rate will be increased also.

Rise of 0.5% in insurance premium tax.

Savings

The ISA limit is set to be raised from £15k to £20k

New Lifetime ISAs to be introduced for those under 40.  This lifetime ISA will offer £1 from the government each year for every £4 saved.

Infrastructure

£700m will be spent on flood defences.  This will be paid for by an increase of 0.5% in insurance premium tax (IPT)

The UK Government confirmed its commitment to building Crossrail 2.

Education

Extra funding to be made available to ensure that every primary and secondary school will become or be in the process of becoming an academy by 2020.

Government will look at plans to introduce the teaching of maths until age 18 for all pupils.

Additional announcements…

£100m from Libor fines will be given to air ambulances.

There will be a new tax break for museum and galleries which take their exhibitions on tour.

The tolls on the Severn Bridge to be halved

Annual threshold for small business tax relief to be raised to a maximum of £15,000.

Commercial stamp duty 0% rate on purchases up to £150,000, 2% on next £100,000 and 5% top rate above £250,000.

 

 

(Usual ABG disclaimers apply.  Some amendments may be applied following a detailed review of the Chancellor’s statement and all accompanying publications)

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