close menu

The 2016 Budget summary

by Scott Brown | Mar 16, 2016
  • On 16 March, George Osborne, Chancellor of the Exchequer, read the Budget Statement for the 2016/17 tax year and beyond. The March Budget was directed at future generations and continuing the national recovery.
    sg_march-budget-banner_615_2016_03

    State of the economy

    • The UK growth rate has been revised down from 2.4% to 2.2% in 2015/16, 2.0% in 2016/17 and 2.2% in 2017/18 followed by 2.1% up to 2020.
    • Unemployment is at its lowest level since 1974, with an additional 2 million jobs in the economy.
    • Inflation is predicted to be 0.7% in 2016 and 1.6% in 2017, which is still within the target of 2% CPI.
    • The deficit will decrease from 2.9% in 2016 to 1.9% in 2017. It will reduce further, to 1.0%, in 2018 and then move into a surplus from 2019.
    • Duty rates on beer, cider and whiskey will be frozen. All other alcohol duty rates will increase with inflation.
    • There will be no increase in the fuel duty rate.

    Personal and business taxation

    • Personal tax allowance to increase to £11,000 from April 2016 and £11,500 from 2017.
    • The 40% (40p) tax threshold is set to rise to £45,000 from £42,385 in 2017.
    • Class 2 National Insurance will be abolished for the self-employed from 2018.
    • The main rate of Corporation Tax will drop to 17% for all businesses from 2020.
    • The threshold for small business rate relief will increase from £6,000 to £15,000, and the higher rate will be increased as well from £18,000 to £51,000.
    • More scrutiny on public sector workers using Personal Service Companies.
    • Effective from midnight tonight, commercial stamp duty will be set at 0% on purchases up to £150,000, 2% on the next £100,000 and 5% top rate above £250,000. 
    • There will also be a new 2% rate for high-value leases with net present value above £5 million. 
    • Insurance Premium Tax to increase by 0.5%.
    • Sugar tax levy to be introduced on the soft drink industry, the proceeds of which will fund school sports initiatives.

    Saving, investments and pensions

    • The ISA tax-free limit will be raised to £20,000 from around £15,000.
    • From April 2017 a new Lifetime ISA for those under 40 will be introduced. As part of this ISA the government will contribute £1 for every £4 you save. This government bonus is valid for every year until you turn 50. 
    • Capital Gains Tax to fall from 28% to 20% for higher tax rate payers; and from 18% to 10% for lower tax rate payers. However, the Capital Gains Tax on residential properties remains unchanged.

    If you have any questions as to how the Budget will affect your personal or professional finances, please give us a call on + 44 (0) 20 7759 7553 or email us at accounting@sableinternational.com.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Autumn-statement-banner-no-logo-white
      Highlights from the 2018 Autumn Statement
      Oct 30, 2018  |  by Scott Brown
    • man-in-front-of-shop
      A quick guide to UK business tax
      Oct 26, 2018  |  by Scott Brown
    • working-man-contractor
      Self-employment vs. contracting in the UK: What’s the difference?
      Oct 11, 2018  |  by Kobus Van den Bergh
    • growing-business
      Why your SME needs management accounting
      Oct 10, 2018  |  by Scott Brown
    • yes no cross tick
      HMRC’s employment status test continues to frustrate UK contractors
      Sep 24, 2018  |  by Kobus Van den Bergh
    • Money
      Leaving the UK? Get some extra cash by claiming your tax refund
      Sep 20, 2018  |  by Kobus Van den Bergh
    • Businessman-on-graph
      How you can stop worrying and learn to love outsourced accounting
      Aug 03, 2018  |  by Scott Brown
    • tax-deadlines
      Self Assessment deadline reminder! Second payment due end of July
      Jul 25, 2018  |  by Kobus Van den Bergh
    • magnifying-glass-contract
      IR35: Are you in or are you out?
      Jul 02, 2018  |  by Kobus Van den Bergh
    • Grabbing-money
      Don’t overpay on your tax! Make sure you’re on the right tax code
      Jun 28, 2018  |  by Kobus Van den Bergh
     
     

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120

    Durban

    201 The Annex
    Ridgeside Office Park
    Umhlanga +27 (0) 31 536 8843

    United Kingdom

    London

    Castlewood House
    77/91 New Oxford Street
    WC1A 1DG +44 (0) 20 7759 7514

    Croydon

    5-7 Selsdon Road
    South Croydon
    CR2 6PU +44 (0) 20 7759 7581

    Australia

    Melbourne

    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services License issued by ASIC to deal in foreign exchange (1st Contact Group - AFS License number 335 126).

    Our site will be down for approximately 90 minutes on Saturday 17 November at 09:00 BST. 
    We're carrying out scheduled maintenance to ensure we continue to provide you with the service you've come to expect from us.
    This site uses cookies, read more or close this notice.