Budget – March 2016
March 18th, 2016
Following the most recent budget we’ve gathered together various summaries which we believe are very useful and simple to read, and summarise the major talking points very well.
The key points to outline are as follows:
- A new Lifetime Individual Savings Account (ISA) aimed at helping people to save for a first property or to boost their retirement savings. Available for savers aged between 18 and 40, savings of up to £4,000 per tax year placed in the Lifetime Isa will receive a 25% top-up from the government, boosting annual savings to £5,000 a year.
- Significant increase in the standard ISA limit from £15,240 to £20,000 in April 2017.
- Personal allowance, the amount everybody can earn each year without paying income tax-will rise to £11,500 in 2017-18. It is currently £10,600 and is due to rise to £11,000 on 6 April 2016. The threshold for higher-rate tax will increase from £42,385 to £43,000 in April this year and then £45,000 in 2017-18.
- A cut in capital gains tax on assets such as shares. However this will not apply to residential property which will be subject to an 8% surcharge, so buy-to-let investors and second homeowners will not benefit.
- A significant increase in small business rate relief to £15,000.
- Fuel duty frozen.
- A sugar tax levied on soft drinks manufacturers.
Please click here to see Brewin Dolphin’s summary of the budget, one of the Discretiuonary Fund Managers on the Radcliffe & Co panel.
Please click here to see Chartered Accountants, Fiander Tovell’s summary.