Brief summary of changes:
Personal Tax
- Personal allowances will be increased to £11,500 from 2017.
- Higher basic rate tax threshold by £5,000 to £45,000 from 2017/18.
- ISA limit to increase to £20,000 with flexible ISA’s for under 40’s. People can save £4,000pa and get a £1,000 bonus from Govt.
- Help to save for those on lower incomes. A 50% Govt bonus for those who save up to £50/month.
Capital Gains Tax
- The higher rate of CGT to be cut from 28% to 20% from April. Lower rate will be 10% reduced from 18%. ( except for residential properties)This is a major boost for those with capital gains.
Business Tax
- Corporation tax to be cut to 17% from 2020.
- Class 2 NIC for self employed to be abolished.
- Higher threshold for business rates to £15,000
- Extended entrepreneurs relief for long term investors in unlisted companies.
- Corporation tax rules for losses to be modernised.
