Here’s a quick summary of the key points in the budget that could affect your business.
- Corporation tax will reduce from 20% to 17% by 2020
- Class 2 National Insurance contributions will be abolished
- Small business tax relief will increase from £6,000 to a maximum of £15,000. The higher rate will increase from £18,000 to £51,000, making 600,000 firms exempt.
- The 40% income tax band will increase from the current £42,385 to £45,000 in April 2017
- Individual’s tax-free personal allowance will rise to £11,500 in April 2017
- Capital Gains Tax will be cut from 28% to 20%, and from 18% to 10% for basic-rate taxpayers
- From midnight tonight, 16th March 2016, the level for 0% rate Commercial stamp duty on purchases will increase to £150,000, with 2% payable on the next £100,000 and 5% payable above £250,000.