Introduction

Pitched as a “Budget that puts the next generation first,” George Osborne’s speech contained a number of key points aimed at helping people save for the future.

Some of the highlights of the Budget include changes to business rates and the abolition class 2 national insurance contributions for the self-employed.

As always, there were a few surprise announcements too. The following report summarises the announcements made by Chancellor George Osborne during the 2016 Budget on 16 March 2016.

If you have any questions about anything in this document, please feel free to contact PKB Accountants and we will be more than happy to help.

At a glance

Measures announced in Budget 2016 include:

Businesses

Corporation tax

The rate will be reduced to 17% by April 2020.

Business rates

The small business rate relief threshold will increase from £6,000 to £15,000 in April 2017.

Stamp duty

The way stamp duty is applied to commercial properties will change to a marginal rate system.

Self-employed

Class 2 national insurance contributions for the self-employed will be abolished from 2018.

Tax-free allowances

There will be £1,000 allowances on goods and services and property income from April 2017.

Personal

Personal allowance

The personal allowance will rise to £11,500 From April 2017.

Lifetime ISA

Those aged under 40 can save up to £4,000 a year and receive a 25% government bonus from April 2017.

ISAs

The annual ISA allowance will increase to £20,000 from April 2017.

Fuel duty

Fuel duty will remain frozen.

Alcohol duties

Duty on beer, cider and Scotch whisky will remain frozen this year.

Other

Capital gains tax

Capital gains tax will reduce from 28% to 20% from April 2016.

Sugar levy

A sugar levy will be placed on the soft drinks industry from 2018.

Insurance tax

Insurance premium tax will increase by 0.5%.

Stamp duty

Additional property rates will also apply to large investors from April 2016.

Infrastructure

There will be widespread investment in road and rail networks.

If you’re looking for tax accountants in Berkshire, please feel free to contact PKB Accountants and we will be more than happy to help.

Look out for PKB News over the next few days, when we will be exploring highlights of the Budget 2016 and how they may effect you.