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 email@example.com.