UK Budget 2016

Budget 2016

UK Budget 2016

George Osborne delivered his 8th budget as chancellor.  We’ve waded through it and highlighted some of the key points that we think are relevant so you don’t have to.

Personal Tax

  • Threshold for 40% income tax will increase from the current £43,000 to £45,000 in April 2017
  • Tax free personal allowance will increase from the current £11,000 to £11,500 in April 2017
  • Capital gains tax has been cut from 28% to 20%, and from 18% to 10% for basic-rate taxpayers for 2016-17 (not for residential property)
  • Dividend allowance is now £5,000
  • Class 2 National Insurance will be abolished from 2018
  • Annual ISA limit to rise from the current £15,240 to £20,000 in April 2017
  • New lifetime ISA for the under 40s – for every £4 saved the government will put in £1. There are conditions on how this money is spent though.

Corporate Tax

  • Corporation tax rate will fall from the current 20% to 17% by 2020
  • VAT threshold now £83,000
  • No business rates from April 2017 for small business occupying a property with a rateable value of £12,000 or less

Other

  • Every school will be an academy by 2022
  • HS3 between Leeds and Manchester (cutting journey times to 30 minutes)
  • 25% of secondary schools will be able to opt in to a longer school day from Sep 2017
  • Sugar tax will apply to soft drinks companies and the money raised will be used to double the primary PE and sport premium to £320 million a year

We’ve summarised some of the more fundamental points we think you need to be aware of on a poster for you to print out.  Here you go…

ACCOUNTING FACTS YOU NEED TO KNOW 2016