Budget 2016 - What's in it for you?

​Today the Chancellor presented his eighth budget. 

As has become the norm, many tax changes were announced as part of the Autumn Statement and many of the items featured look beyond the next tax year, however there were a few surprises:

Photo by NORTHFOLK on Unsplash

• Confirming the point at which people pay tax (National Insurance has lower thresholds which are unchanged) from 6 April 2016 rises to £11,000
• Further reducing Corporation Tax to 17% by 2020
• Confirming marriage allowance at £1,100 for 2016/17
• Increasing the ISA limit to £20,000 per annum from 6 April 2017
• Implementing a new Lifetime ISA with a 25% government backed bonus for adults under 40 who save upto £4,000 per annum
• Confirming the Annual Investment Allowance is now permanently £200,000
• The scrapping of Class 2 National Insurance (currently £2.80 per week) 6 April 2018
• Scrapping this year's planned fuel duty increase which should help keep costs down!
• Reducing Capital Gains Tax to 10% for basic rate tax payers and 20% for higher rate tax payers - this does not apply to residential property

I will be uploading a new digital version of my 2016/17 tax card to my refreshed website by 17.00 tomorrow, so you're welcome to download it to your device.  In the meantime the new tax pages feature business and personal tax rates for 2016/17.  Alternatively the tried and tested hard copies will be available later this week!

As always, this newsletter is designed to draw attention to specific topical issues and is in no way intended to provide advice tailored to your business - advice must always be sought before acting on any item featured.

Best wishes
Nigel