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2016 Budget Surprises

I am delighted to be able to announce that as of 1st April 2016 Tor Stringfellow, our Senior Manager, will be appointed a Partner here at Jack Ross. Tor has been with us for 3 years and will already be known to many of you. He is looking forward to meeting as many clients as possible over the forthcoming months.

George Osborne managed to produce some surprises for us in his 2016 Budget speech yesterday in spite of the claims that he had little room to manoeuvre.

His increase in the Personal Allowance to £11,500 and to the Higher Rate Threshold to £33,500 from April 2017 is welcome as is the reduction in Capital Gains Tax to 10% for Basic Rate Taxpayers and 20% for Higher Rate Taxpayers. However, the assault on rental property and second-home ownership continues with Capital Gains Tax remaining at 18% & 28% on disposal of such properties.

Small business has had a boost from the doubling of Business Rates Relief and the reduction in Corporation Tax from 20% down to 17% between April 2017 and April 2020 is most welcome.

The Chancellor abandoned his proposals to radically change the Tax Relief on Pension Contributions beyond those announcements already made last year and confirmed that the Tax-Free Lump Sum payable on Retirement is safe for the foreseeable future. He has however, introduced a new form of Pension Savings for the under 40’s which looks like a model for future Pension Planning for the next generation of workers.

Click here to download our Budget Report, and remember we are here to help you minimise your tax liabilities and maximise your use of tax allowances.