The chancellor has announced his budget. These are the key points that effect the tax we pay :
– The higher rate tax threshold is being raised raised from £42,385 to £45,000 from April next year
– The tax-free personal allowance is will be £11,500 in 2016/17
– Corporation tax will be cut to 17% by April 2020
– The ISA savings limit will increase to £20,000 a year
– Lifetime ISAs will be introduced for young people
– Reforms to business rates which will mean 6,000 small businesses pay no rates and 250,000
have their rates cuts from April 2017
– New tax free allowances for “micro entrepreneurs” who rent their homes or sell services through
– Capital Gains Tax to be cut from 28% to 20% for higher rate tax payers, and from 18% to 10% for basic-rate taxpayers. There are exclusions relating to property and carried interest.
– Class 2 National Insurance contributions are to be abolished from 2018, which the government says gives a tax cut of more than £130 to three million self-employed workers
Please contact us if you wish to speak about how the budget effects you.