Drummond Laurie Chartered Accountants

No one quite knew what to expect in the first budget by a majority Conservative government for over 20 years.  What we got were a number of announcements which were anticipated, but a number which came out of the blue. We have summarised some of the key points from this budget below


  • Corporation tax to be cut to 19% in 2017 and then to 18% in 2020.
  • A compulsory national living wage of £7.20 per hour for over 25’s will be introduced in 2016 rising to over £9 in 2020..
  • Annual investment allowance (AIA) to be set at £200,000 from 1 January 2016.
  • Employment allowance for National Insurance will rise from £2,000 to £3,000 for April 2016.


  • The personal allowance will rise from £10,600 to £11,000 from April 2016.
  • The higher rate threshold will increase from £42,385 to £43,000 from April 2016.
  • A £175,000 transferable inheritance tax threshold for residential property passed to children and grandchildren will be phased in from 2017.
  • Pension contributions tax relief for additional rate taxpayers will be tapered to a minimum of £10,000 a year from April 2016.

Should you have any queries on anything within the budget announcement, please contact David Anderson on 01324 441260, or via email at david.anderson@drummondlaurie.co.uk.