The Chancellor’s 2016 Budget contained some important announcements and confirmed a number of changes planned for the new tax year.
Following this, we have put together a report which contains the latest tax and financial information, which we trust you will find useful. The report can be found here. Below are some points to summarise some of the important changes.
- Personal allowance increased to £11,000 with the basic rate threshold increased to £32,000 in 2016/17
- Capital gains tax rates reduced with the higher rate of tax down from 28% to 20% and the basic rate tax down from 18% to 10% from 6th April 2016. This will apply to all assets other than residential property.
- Stamp duty will be increased by 3% for any individual who is buying a buy-to-let or second home from 1st April 2016
- A new Lifetime ISA has been introduced where you will receive a 25% bonus from the Government for every pound you put in up to £4,000 a year. This will be available from 6th April 2017
- Corporation tax will be reduced to 19% from 1st April 2017 and will be further reduced to 17% from 1st April 2020
Please also note there are significant changes to pension contributions and the way dividend income will be taxed from 6th April 2016 which were discussed in earlier budget reports. If you would like any more information on these changes please let us know.
For more information on how the changes in this year’s budget may affect you, please contact us.
Frontier Fiscal Services