Budget Briefing 2016

Susie Walker

Susie Walker

Partner and Head of Tax and Brexit Team

George Osborne delivered a Budget with widespread tax changes on Wednesday 16 March 2016.

Key headline items include:

  • Income tax: from April 2017 personal allowance increases to £11,500. The higher rate threshold of income tax goes up to £45,000, again from April 2017. From 6 April 2016 the Scottish Rate of Income Tax will apply if you live in Scotland.  For 2016/17 the overall rates of income tax paid will be the same UK wide. For 2017/18, the Scottish rates are expected to be announced in autumn 2016.
  • Capital gains tax: rates cut from April 2016 to 20% for higher rate taxpayers and to 10% for basic rate taxpayers, with certain exceptions applying. Changes were also announced to Entrepreneurs' relief to relax the impact of previous legislation.
  • Corporation tax: rate cut to 17% from 1 April 2020.
  • Insurance Premium Tax: increases from 9.5% to 10% with effect from 1 October 2016.

Our expert team have analysed the Budget in full and have pulled out the important issues that we believe may affect you or your business.

Make sure you’re up to speed: download our briefing document now.