Budget latest 16th March 2016

  • Key points from todays budget;
  • 3% SDLT surcharge on additional residential properties has been confirmed, and "will apply to large investors too". The higher rates will apply from 1st April 2016 and are being legislated for in the Finance Bill 2016.
  • Capital Gains Tax rates will be cut from 6th April 2016, but residential property will still be taxed at current rates. The higher CGT rate will be cut from 28% to 20%, and the basic rate from 18% to 10%.
  • One briefing note from the Treasury states that: "There will be an additional 8 percentage point surcharge to be paid on residential property and carried interest" – but there’s on such mention  in the full CGT Policy Paper
  • An overhaul of commercial property SDLT system, bringing it in line with residential’s new progressive approach. From midnight tonight: commercial stamp duty will have a zero rate band on purchases up to £150,000; a 2% rate on the next £100,000; and a 5% top rate above £250,000. There will also be a new 2% rate for those high value leases with a net present value above £5m.
  • The Insurance Premium Tax rate, a tax on insurers will rise by 0.5% (from 9.5% to 10%) to pay for improved flood defences.
  • An overhaul of the business tax system, with a new "roadmap" to make it "fit for the future" and new rules to regulate large multinationals’ tax matters.
  • Corporation Tax rate to be reduced to 17% by 2020.
  • The threshold for Business Rate Relief for small businesses will rise from £6,000 to £15,000; the threshold for the higher rate will rise from £18,000 to £51,000.
  • Employers will pay National Insurance on pay-offs above £30,000 from April 2018
  • Crossrail 2 gets the green light, with £80m pledged to get things in motion.
  • HS3 gets the go-ahead, along with lots of road improvements linking the Northern Powerhouse, improvements to SW rail lines, and a halving of the Severn Bridge toll.
  • Two new tax-free £1,000 allowances for the "sharing economy" – one for selling goods or providing services, and one for income from a property.
  • Devolution to continue a-pace, with new elected mayors coming in to play in English counties and southern cities (East Anglia, West of England, Greater Lincolnshire).
  • The higher rate income tax threshold is to rise from £42,385 to £45,000, while the tax free personal allowance rises to £11,500 from April 2017.
  • There’s a new "Lifetime ISA" for anyone under 40 saving up to £4,000 per year. The government will pop in £1 for every £4 saved, and the balance can be switched between Help to Buy ISAs.