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The Chancellor presented his Budget this afternoon

16th March 2016

The Chancellor presented his Budget this afternoon.

The key tax announcements include:

  • Reduction in the Capital Gains Tax Rate to 10% for basic rate taxpayers and 20% for higher rate taxpayers, other than for carried interest and residential property
  • Capital Gains Tax Rate of 10% for long term investment in unquoted companies
  • Income Tax: Personal Allowance to increase to £11,500 from 2017
  • Income Tax: Higher rate threshold to increase to £45,000 from 2017
  • Companies: Loans to participators to be taxed at 32.5%
  • Employees’ termination payments over £30,000 to be subject to Employer’s National Insurance from 2018
  • Measures to ensure UK property development is subject to tax
  • Business Tax Road Map to be published
  • Restriction to the use of personal service companies in the public sector
  • Corporation Tax rate to be 17% by 2020
  • Introduction of an interest deductibility cap: 30% of UK earnings
  • Offsetting of losses for tax purposes to be reformed
  • New tax allowances of £1,000 for those who sell services or rent property online
  • Reform of Stamp Duty Land Tax on commercial property purchases from midnight: a move to a progressive, rather than “slab” system
  • Business rates reduced
  • Petroleum Revenue Tax abolished
  • Tax payment dates will be aligned more closely to when profits are earned, from 2019
  • Insurance Premium Tax to increase by 0.5% to 10%
  • April 2016 Stamp Duty Land Tax 3% surcharge on additional residential properties will also apply to larger landlords
  • A new sugar levy on soft drinks
  • Fuel duty frozen
  • Class 2 National Insurance for the self-employed abolished from 2018
  • ISA limit to increase to £20,000 from 2017
  • Introduction from April 2017 of a Lifetime ISA for those aged under 40

Further details will follow in our comprehensive summary later today.

Please get in touch with your usual haysmacintyre contact or our tax team if you have any queries in the meantime.

Katharine Arthur, Head of Tax
Tel: 020 7969 5610
Email: karthur@haysmacintyre.com

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