Budget Summary Spring 2016
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- The launch of a new Lifetime ISA from April 2017 for adults under the age of 40, with a maximum contribution of £4,000 a year and a 25% bonus. The standard ISA investment limit will rise to £20,000 at the same time.
- A cut in the main rates of capital gains tax from 2016/17 to 20% for higher and additional rate taxpayers and 10% for other taxpayers. However, the existing rates will continue for gains on residential property and carried interests.
- An increase in the personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.
- An extension of entrepreneurs’ relief to cover long term external investors in unlisted companies.
- Two new £1,000 tax allowances for property income and trading income, starting in April 2017.
- A cut in the corporation tax rate to 17% in 2020 and greater flexibility in the use of tax losses by smaller companies.
- A restructuring of stamp duty land tax on commercial properties.
- A major revamp of business rates, permanently doubling the small business rate relief.
- The abolition of Class 2 National Insurance contributions for the self-employed from 6 April 2018.