Budget 2016 Update

TITRE

Personal Taxation - The threshold at which people pay 40% income tax will rise from £42,385 now to £45,000 in April 2017. Will only apply to Scotland if adopted by Scottish government.

Tax-free personal allowance, the point at which people pay income tax, to rise from £11,000 in April 2016 to £11,500 in April 2017.

Capital Gains Tax to be cut from 28% to 20%, and from 18% to 10% for basic-rate taxpayers, but no change for residential property.

Insurance premium tax to rise from 9.5% to 10%.

Class 2 National Insurance contributions abolished, which the government says gives a tax cut of more than £130 to three million self-employed workers from 2018.

Business

Headline rate of corporation tax - currently 20% - to fall to 17% by 2020.

Annual threshold for 100% relief on business rates for small firms to rise from £6,000 to £12,000 and the higher rate from £18,000 to £51,000, exempting 600,000 firms.

Commercial stamp duty 0% rate on purchases up to £150,000, 2% on next £100,000 and 5% top rate above £250,000. New 2% rate for high-value leases with net present value above £5m. Effective from midnight.

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