George Osborne presented the first Spring Budget of this Parliament on Wednesday 16th March 2016. In his speech the Chancellor reported on ‘an economy set to grow faster than any other major advanced economy in the world’.
Towards the end of last year the government issued the majority of the clauses, in draft, of Finance Bill 2016 together with updates on consultations. Publication of draft Finance Bill clauses is now an established way in which tax policy is developed, communicated and legislated.
The Budget updates some of these previous announcements and also prepares further measures. Some of these changes apply immediately, others in April 2016 and some take effect at a later date.
Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.
Main Budget tax proposals
Our summary concentrates on the tax measures which include:
- Reductions in the rates of capital gains tax
- Introduction of a Lifetime ISA for under 40s
- Changes to Entrepreneurs’ Relief
- Abolition of Class 2 NIC
- Reduction in the corporation tax rate
- Reforms to corporate tax losses
The Budget proposals may be subject to amendment in a Finance Act. You should contact us before taking any action as a result of the contents of this summary