If you would like advice on how the Chancellor’s #Budget2016 affects you and your business please get in touch. In the meantime here is a summary of the changes that we think make most difference to our customers.
- The Business Rate threshold is rising from £6,000 to £15,000 which means that more small businesses will pay no rates. The higher rate is rising too so other businesses will benefit from a reduced level.
- Self-employed Class 2 National Insurance is being abolished from April 2018 which will make a difference of £2.50 per week or £130 per year.
- The Personal Allowance is rising from 11,000 in 2016 to 11,500 in 2017. The Higher rate threshold will rise at the same time from £42,385 to £45,000.
- Company tax rates will drop from their current level of 20% to 17% by April 2020. Tax losses are going to be treated more flexibly too.
- Capital Gains Tax is the big change dropping from 18% to 10% at basic rate level and from 28% to 20% at the higher rate. This affects sales of assets, however, residential property will remain at the current rates although Land sales should hopefully be taxed at the lower level.
In terms of timing, this last point is most important for any sales over the next few weeks as the new rate is effective from 6th April 2016. Get in touch if you are in any doubt!
Please call us on 01945 581102 or e-mail firstname.lastname@example.org for further details.