Budget: March 2016

Joseph McCullough

 

By Joseph McCullough, Solicitor

Commercial Conveyancing


 

Chancellor George Osborne has just delivered his budget. Here are the key points that relate to your business:

Taxation

  • New sugar tax on the soft drinks industry to be introduced in 2018 which will be calculated on levels of sugar. Milk and pure fruit juice will be exempt.
  • Excise duties on tobacco to rise by 2% above inflation.
  • The headline rate of corporation tax to fall to 17% from 20% by 2020.
  • Annual threshold for small business tax relief to be raised from £6,000 to a maximum of £15,000.

Property (effective from midnight 17 March 2016)

  • The commercial stamp duty rates to change to:
    • 0% on purchasers up £150k
    • 2% on the next £100k
    • 5% on any sum above £250k
  • New rate of 2% for high value leases with a Net Present Value above £5 million.

Economy

  • Growth forecast to be 2% in 2016 which is down from 2.4% in November’s Autumn Statement.
  • Chancellor predicts GDP to grow by 2.2% in 2017 and 2.1% in 2018.
  • A million jobs forecast to be created by 2020.
  • Chancellor forecasts inflation of 0.7% for 2016.

Personal Taxation

  • 40% threshold for income tax will rise from £42,385 to £45,000 in April 2017.
  • The tax-free personal allowance in relation to income tax will rise to £11,500 in April 2017.
  • Capital Gains Tax to be cut from 28% to 20%, and for basic rate tax payers, from 18% to 10%.

The experts will digest the budget in full over the next few days and will no doubt be able to provide more detailed information on how the above will affect your business.

Sources: http://www.bbc.co.uk/news/uk-politics-35819797

 

Disclaimer: The contents of this article are for the purposes of general awareness only.  They do not purport to constitute legal or professional advice, and the law may have changed since this article was published.  Readers should not act on the basis of the information included and should take appropriate professional advice on their own particular circumstances