BUDGET 16 MARCH 2016 – KEY POINTS

BUDGET 16 MARCH 2016 – KEY POINTS

Personal Tax

The threshold at which people pay 40% tax will rise from £42,385 to £45,000 in April 2017.

Tax-free personal allowance rising to £11,500 in April 2017
0.5% rise in insurance premium tax.

Capital Gains Tax

Capital Gains Tax to be cut from 28% to 20%, and from 18% to 10% for basic-rate taxpayers.

Business Tax

Corporation tax to fall from 20 per cent at the start of this parliament to 17 per cent by 2020.

New threshold for small business rate relief raised from £6,000 to £15,000.

Commercial stamp duty 0% rate on purchases up to £150,000, 2% on next £100,000 and 5% top rate above £250,000.

New 2% rate for high-value leases with net present value above £5m.

Savings

Isa limit to rise from £15,000 to £20,000 from next year.
A new “Lisa” — or lifetime Isa — for under 40-year olds. The government will give you £1 for every £4 you save, up to an annual limit of £4,000.

Economy

Growth forecasts cut for every year. The OBR believes the economy is fundamentally less productive than previously thought.
Inflation forecast for 2016 cut from 1 per cent to 0.7 per cent.

Alcohol Duty

Beer, cider, and spirits duties to be frozen.

Fuel Duty

Fuel duty to be frozen for sixth year in a row.

Tobacco Duty

Excise duties on tobacco to rise by 2% above inflation.

Health and Education

A new sugar tax on the soft drinks industry.

Plan for all schools in England to become academies by 2022.

Secondary schools in England to bid for new funding for extra activities like sport and art.

Plans for 25% of secondary schools to stay open after 15:30.

Plans to enable all pupils to study maths until 18
£500m to ensure “fair funding” formula for schools in England.

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