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Budget highlights

l

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.

l

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.

l

An increase in the personal allowance for 2017/18 to £11,500 and the higher

rate threshold to £45,000.

l

An extension of entrepreneurs’ relief to cover long term external investors in

unlisted companies.

l

Two new £1,000 tax allowances for property income and trading income,

starting in April 2017.

l

A cut in the corporation tax rate to 17% in 2020 and greater flexibility in the

use of tax losses by smaller companies.

l

A restructuring of stamp duty land tax on commercial properties.

l

A major revamp of business rates, permanently doubling the small business rate

relief.

l

The abolition of Class 2 National Insurance contributions for the self-employed

from 6 April 2018.

© Copyright 16 March 2016. All rights reserved. This summary has been prepared very rapidly and is for general

information only. The proposals are in any event subject to amendment before the Finance Act. You are

recommended to seek competent professional advice before taking any action on the basis of the contents of

this publication.

CONTENTS

Budget highlights

1

Introduction

2

Personal taxation

3

Pensions, savings and investments

6

Capital taxes

8

Business tax

9

Value added tax

14

Anti-avoidance measures

14

National Insurance contributions

16

BUDGET

16 MARCH 2016

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