Building Your Business
UK Budget Summary 2016

17 March 2016

By PKF-FPM

George Osborne has delivered what he called a “Budget for the next generation” — but how will it affect your finances?
 
In short, if you are small businesses there is some good news But if you are a buy-to-let investor or a large corporate, it is not such good news.
 
Some of the key points are as follows:
 
Personal Taxes

  • Fuel duty will be frozen for a sixth year in a row. 
  • The tax free personal allowance will increase to £11,500 next year, in excess of the £11,000 planned.
  • The higher 40pc rate threshold will increase to £45,000.
  • Duty on beers, spirits and the majority of ciders will be frozen.
Business Taxes
  • Corporation tax will be cut to 17% by 2020, from 20% now.
  • Capital gains tax slashed from 28% to 20% (other than residential property) for top rate taxpayers, and from 18% to 10pc for basic rate taxpayers.
  • New threshold for small business rate relief will increase from £6,000 to £15,000, and higher rate will be increased also.
  • Tax on North Sea oil is being effectively abolished, and this change will be backdated, effective from the start of the year.
  • The Chancellor will introduce a sugar levy on the soft drinks industry, assessed by volume and introduced in April 2018. Some of the proceeds will fund school sports.
Savings
  • Tax relief on financial advice.
  • “Help to save” for lower income savers.
  • From April increase Isa limit to £20,000.
  • New lifetime Isa for £4,000 of savings.
Stamp Duty
  • Commercial stamp duty of zero on properties up to £150,000, 2% on the next £200,000 but a top rate of 5% on £250,000.
Please CLICK HERE to view the PKF-FPM UK Budget Summary 2016.  If you require assistance or have any queries on the matters raised in the budget please feel free to contact Anne Rooney, Executive Director, PKF-FPM on ap.rooney@pkffpm.com.
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  • Louth
  • Meath
  • Monaghon