Budget 2016 bullet point summary
George Osborne has unveiled his Budget 2016. Below is a bullet point round-up of what was unveiled. The list will be continually updated as more details emerge in the coming days:
Income tax
- On tax evasion there are plans to close disguised remuneration schemes. The public sector will have to ensure employees pay the correct amount of tax and not through Personal Services Companies
- 40% income tax threshold increases from £42,385 to £45,000 from next April
- Personal income tax allowance to increase to £11,500 next year
- there will be two new tax-free £1,000 allowances from April 2017 – one for selling goods or providing services, and one for income from property you own
Capital Gains Tax
- Top capital gains tax rate cut from 28% to 20%. Lower rate for basic rate tax payers to be cut from 18% to 10%
Insurance Premium Tax
- Increased by 0.5%
Corporate tax
- New rules introduced limiting the size of losses that large businesses can offset to reduce their tax bills
- Proposed cut in corporation tax to 17.5% from 20% by 2020
- Changes to commercial stamp duty rates. There will be a 0% band for property up to £150,000. Then a tiered system of 2% on the next £100k and 5% rate above £250k
- Revised thresholds for business rate relief
- New sugar levy to be applied on sugary drinks in two years following consulations
National Insurance
- There will be employer national insurance contributions payable on redundancy payments over £30,000
Pensions
- Nothing announced - tax-free cash lump sum to be kept despite prior rumours
Inheritance tax
- Nothing announced
Savings
- ISA limit to increase from £15,000 to £20,000
- New lifetime ISA to be introduced for under 40s where the Government will give £1 bonus for every £4 saved. Annual allowance of £4,000
- A new saving shceme for low-paid workers was annnounced which could be worth £1,200 over four years
Duty
- Fuel duty frozen for 6th year in a row
- Duty on beer and cider is also frozen
- Duty on tobacco to rise by 2% above inflation
Benefits
- Disability benefits to increase in above rate of inflation
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