What does the 2016 Budget mean to you?

With the most recent Budget being announced last week, we have summarised the highlights that may be important for you and your business.

- Firstly, the personal allowance is due to increase to £11,000 in April 2016 and £11,500 in April 2017, meaning that the amount you can earn, tax free, is on the rise.

- The higher rate 40% tax bracket is set to increase from £42,385 to £45,000 by April 2017.

- For the Self-Employed, Class 2 National Insurance Contributions are set to be abolished by April 2018; a change benefiting more than 3 million people.

- Small Business Rates Relief is due to double, taking the threshold from £6,000 to £12,000.

- For Limited Companies, Corporation Tax is set to drop from 20% to 17% by 2020.

- From April 2016, Capital Gains Tax rates will reduce significantly. The Basic Rate Capital Gains Tax will go from 18% to 10% and Higher Rate Capital Gains Tax will be cut from 28% to 20%.

- Finally, from April 2017, there will be a new Tax Allowance on Property Income. The first £1,000 worth of income will be Tax Free. A similar Tax Allowance will be enforced on earnings from Occasional Jobs too, with the first £1,000 of this income being Tax Free also.

If you would like to share your thoughts or need some advice on what the newly announced Budget means for you, then please don’t hesitate to contact us on 01530 414 285 or at kayleigh@darceyandbateaccountants.co.uk

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