What the Budget means to you

Our summary of the key announcements in Chancellor’s 2016 Spring Budget statement. We hope you find it useful and interesting. This was the third Budget within a year, but George Osborne still managed to produce a few surprise measures among the inevitable re-announcements. The most significant measures included:

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 of stamp 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.

Note that some of these tax changes may be different or not apply in Scotland as they are devolved and will be set by the Scottish Government for 2017-2018.

If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch with us to discuss them.

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