This week we saw the first conservative led budget for almost 20 years. There are plenty of changes which we will be looking at over the forthcoming weeks and advising our clients accordingly. I have listed below some of the key announcements by George Osborne and will be looking at the detail, moving forward.
KEY ANNOUNCEMENTS
Introduction of a ‘NEW LIVING WAGE’ of over £9.00 an hour is to be introduced by 2020. This will climb incrementally and will be set at £7.20 from April 2016
Tax Free personal allowance will increase to £11,000.00 from April 2016
Higher Rate tax thresholds will increase to £43,000.00 from April 2016
There are reforms to dividend tax starting April 2016. The tax credit is being abolished and a new tax free dividend allowance is being introduced. Over this £5000.00 allowance, dividends will be taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.
From April 2017, a family home allowance will be introduced for inheritance tax purposes.
Corporation Tax will be reduced to 19% in 2017 and to 18% in 2020
The AIA Annual Investment Allowance will be permanently set at £200,000.00 from April 2016 for SMEs
Employment Allowance for employers will increase by £1000.00 to £3000.00
