Budget 2016 highlights

Business tax

  • Small Business Rate Relief threshold rising to £12,000
  • Corporation tax, currently 20%, will reduce to 19% from April 2017 and to 17% from April 2020
  • Stamp duty on commercial property reduced for lower bands
  • New sugar levy on soft drinks from 2018
  • Businesses will be required to keep digital records, and to update HMRC “at least every quarter”

Personal tax

  • New Lifetime ISA for the under-40s; up to £4,000 per year with government bonus of £1 for every £4 saved (equivalent to basic rate of tax)
  • Capital gains tax to be cut from 28% to 20%, basic rate from 20% to 10%
  • Income tax personal allowance rising £11,000 from April 2016 and £11,500 from April 2017
  • Higher rate threshold will increase from £43,000 in 2016-17 to £45,000 in 2017-18
  • Class 2 NICs for the self-employed abolished from 2018
  • ISA allowance to rise to £20,000 from April 2017

New rates and allowances