Déjà vu Budget?
Well, with a headline grabbing Corporation Tax cut to 17% from April 2020 this sounds a little like “we’ve been there before” with last summer’s Budget announcing something similar, but was that all?!
On a quick review, the following snippets may be of interest to our clients:
- Tax free Personal Allowance increased to £11,500 from 6 April 2017;
- Basic rate tax band increased to £33,500 from 6 April 2017;
- Class 2 NIC being abolished from 2018 for Self Employed;
- Capital Gains Tax rates from 6 April 2016 cut to 20% from 28% and 10% from 18%, but no change for residential property;
- Corporation tax rates being reduced from 20% to 19% in 2017 and 17% in 2020;
- Corporation Tax loan to participators tax rate to increase from 25% to 32.5% from 6 April 2016;
- New Lifetime ISA from April 2017 for under 40s to fund first house purchase, or keep until 60 – Up to £4,000 can be saved each tax year and Government will put in 25%.
- ISA limit increased from April 2017 to £20,000;
- Pension changes - Lifetime Allowance reduced to £1M from April 2016 and Annual Allowance restricted for individuals who have income for a tax year greater than £150,000 from 6 April 2016 (announced previously);
- Land and Buildings Transaction Tax (LBTT) supplement of 3% on second home or buy to let property in Scotland from 1 April 2016 (announced previously - with similar 3% Stamp Duty Land Tax (SDLT) charge for rest of UK as LBTT replaced SDLT in Scotland in April 2015);
The following link to HMRC’s website gives more information:
Whilst we have no reason to believe the above is not accurate it is for general guidance only. Buick & Co Chartered Tax Advisers and Tax Consultants take no responsibility whatsoever for this blog, its reliability or any actions you take having read it.