What does the Budget mean for you

Individuals/Self Employed

  • Tax Free Personal Allowance increase to £11,500 from April 2017
  • Higher Rate Tax Allowance to increase from £42,385 to £45,000 from April 2017
  • Capital Gains Tax for basic rate taxpayers reduced from 18% to 10% from April 2016 (excludes property disposals)
  • Capital Gains Tax for higher rate taxpayers reduced from 28% to 20% from April 2016 (excludes property disposals)
  • Insurance costs will increase by 0.5%
  • Introduction of a Lifetime Isa for the Under 40’s, which will offer a £1 bonus for every £4 invested (max £4k per annum investment)
  • Redundancy/Termination Payments greater than £30k will now attract NI as well as Tax from April 2018.
  • Annual Isa limit increase to £20k from 2020
  • Class 2 National Insurance for Self Employed to be abolished from April 2018

Companies/Business

  • Reduction in Corporation Tax to 17% from April 2020
  • Small Business Rate Relief increase from £6k to £15k rateable values
  • Higher Rate Threshold for business rates increased from £18k to £51k
  • Loans to Participators (Directors) will attract a tax rate of 32.5% up from 25%
Want to know more about how this will affect you or any other changes not listed above please contact us on info@tandleaccountancy.co.uk