Budget 2016: Summary of main points
Here is a summary of the announcements initially picked up from the Budget 2016, taken from our tweets. Sign up to our ‘Save Tax’ newsletters using the mini-form on this page to receive a full report on the morning after the Budget 2016 made by the chancellor Gordon Osborne on 16th March 2016.
- Growth now likely to be 2% this year, revised down (from 2.4%), 2.2% next year and 2.1% the year after
- £3.5bn extra cuts to public spending by 2019/20
- Tax on overdrawn directors loans up to 32.5% from 25%
- Termination payments over £30,000 subject to employer national insurance from 2019
- From April 2017 will restrict interest deductibility at 30% – group ratio rule & profit shifting clampdown – IP treatment
- Corporation tax down to 17% by 2020 (down to 19% and then 18% before that)
- Business rate relief threshold raised to £15,000. Higher rate £51,000
- People who sell services online or rent out their homes will be eligible for two new tax free allowances worth £1,000 a year
- Stamp duty: From midnight tonight, stamp duty on commercial property will be: 0% up to £150,000, 2% on next £100,000, 5% above £250,000
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- Severn tolls will be halved when they return to public ownership in 2018
- Increase to standard rate of Insurance Premium Tax by 0.5% and pledges to put the money raised towards flood defences
- Plans confirmed to turn every primary and secondary school in England into academies by 2020
- New sugar tax, levied on companies in two years time, assessed on sugar content. 2 bands 5g and 8g per 100ml. Raises £520m
- Fuel duty frozen for the 6th year in a row
- tobacco duty to rise 2% above inflation
- Beer, cider and whisky duties frozen. The rest – wine etc – increase by inflation as planned.
- Capital Gains Tax cut from 28 to 20% and lower rate from 18% to 10% (though not on residential properties)
- No plans to abolish lump sum pension relief
- Isa limit lifted to £20,000, plus new lifetime ISA for under 40s saving £4,000 per year – gov’t will add £1,000 per year till you’re 50.
- Tax free personal allowance to rise to £11,500 from April next year (£11,000 from this April)
- Higher tax rate threshold goes up to £45k next year (£43,000 from this April)
Sign up to our ‘Save Tax’ newsletter on this page to receive a full report on the morning after the Budget 2016 Speech made on 16 March 2016.