Chancellor George Osborne delivered his Budget 2016 on 16 March 2016 and outlined several changes national insurance, corporation tax and stamp duty.
Some of the headline measures relating to businesses announced in the Budget include:
- Corporation tax – the rate of corporation tax will reduce to 17% by 2020
- Business rate relief – the doubling of small business rate relief will be permanent from 1 April 2017. The relief threshold will rise from £6,000 to £15,000 and is tapered between £12,000 and £15,000
- Stamp duty – the way stamp duty is applied to commercial properties will change to a marginal rate system with a zero rate band on purchases up to £150,000
- Self-employed – from 2018, class 2 NICs for the self-employed will be abolished
- Tax-free allowances – there will be 2 allowances of £1,000 on goods and services and property income from April 2017
- Loans to participators – the tax rate for loans to participators will increase from 25% to 32.5% from April 2016.
Carolyn Fairbairn, director general of the Confederation of British Industry, said: “After a year of surprises, this was a stable Budget for business facing global stormy waters. The chancellor has listened to our concerns about the mounting burden on firms and chosen to back business to grow the economy out of the deficit.”
Talk to us today about Budget 2016.