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.
- 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.
- 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
- 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…