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Employee shareholder status

An individual lifetime limit of £100,000 will be introduced for

arrangements entered into after 16 March 2016 on gains eligible

for CGT exemption through employee shareholder status.

Stamp duty land tax

The extra 3% stamp duty land tax (SDLT) will apply to purchases

of additional residential properties from 1 April 2016. Following

consultation there will be no exemption from the higher rates for

significant investors. Purchasers will have 36 months (rather than

18 months as originally proposed) to claim a refund of the higher

rate if they buy a new main residence before disposing of their

previous main residence.

Non-residential SDLT

The rates of SDLT on non-residential properties will be reformed

from a slab to a banding system similar to that for residential

properties. This takes effect from 17 March 2016 with transitional

provisions for properties where contracts have already been

exchanged. There will be a 0% rate up to £150,000, a 2% rate

for the next £100,000, and a 5% rate above £250,000. A new 2%

rate will apply to leasehold transactions with a net present value

over £5 million.

BUSINESS TAX

Corporation tax

The corporation tax rate, which is currently 20% and due to fall

to 19% in 2017, will be reduced to 17% from 1 April 2020.

Corporation tax payment dates

There will be a delay to the previously announced change to

corporation tax payment dates for companies with taxable

profits over £20 million. They will now apply to accounting

periods starting on or after 1 April 2019.

Corporation tax loss relief

The current streaming rules will become more

flexible. Losses arising on or after 1 April 2017 that

are carried forward will be usable against profits

from other income streams or the profits of other

BUDGET

16 MARCH 2016

page 9

saver

Check that you are still

trading through the

most appropriate vehicle

for your circumstances.

Incorporation makes sense

for some people – but the

new dividend tax rules

have changed the picture.

£