This was the third budget within a year, but George Osborne still managed to produce a few surprise meaures among the inevitable re-announcements. The most significant measures include;
- The launch of a new Lifetime ISA from April 2017 for adults under the age of 40, with a maximum contribution of £4,000 a year and a 25% government bonus on savings.
- A cut in the main rates of capital gains tax from 2016/17 to 20% for higher and additional rate taxpayers and 10% for other taxpayers, although the existing rates will continue to apply to gains on residential property and carried interests.
- An increase in the income tax personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.
- Two new £1,000 tax allowances for property income and trading income, starting in April 2017.
- A restructuring ofstamp duty land tax (SDLT) on commercial properties.
- A major revamp of business rates, permanently doubling the Small Business Rate Relief.
- The abolition of Class 2 National Insurance contributions from 6 April 2018.
To access our summary and Tax Tables for 2016/17 please click on this link Budget Summary 2016
If you have any questions about the summary’s content or how any aspects of your tax and financial planning may be affected by the Budget, please call us on 0141 352 7800 and ask to speak to one of our advisers. For financial advice, an initial no-obligation meeting is always at our expense.