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%