We have pleasure in attaching our summary of the key announcements in the Chancellor’s 2016 Budget statement.
George Osborne has put a spin on the saying that 'hindsight is 20:20' by staking his reputation on his ability to apply foresight as to where the economy will be in 2020. It will not be until then that we will know whether expected tax inflows from rising corporate profits will help him maintain his goal to have balanced the books. Will he be right? Not unless there is growth in productivity and how will that be affected by the outcome of the vote on the EU?
The attached will give you the key points from yesterday's Budget. If that raises issues for you, please speak to us.
The Budget highlights include:
- A cut in the main rates of capital gains tax from 2016/17 to 20% for higher and additional rate taxpayers and 10% for other taxpayers, although the existing rates will continue to apply to gains on residential property and carried interests.
- An increase in the income tax personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.
- A restructuring of stamp duty land tax (SDLT) on commercial properties.
- A major revamp of business rates, permanently doubling the Small Business Rate Relief.
- An extension of entrepreneurs’ relief to cover long term external investors in unlisted companies.
We hope that you will find the attached Budget Summary useful. If you would like to discuss any implications personal to your financial position or require specific advice in relation to the above points, please do not hesitate to contact any member of our Private Wealth & Tax , Commercial Property or Corporate Teams.
Managing Partner Client Services