Budget 2016 - Summary of the Facts
George Osborne has delivered his 2016 Budget. Mr Osborne constantly referred to this budget as 'the budget for the next generation' and also often stressed the need to 'act now so we don't pay later'. We've set out our summary below, along with the key highlights.
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Budget 2016 Summary of the Facts
A PDF of the 2016 Budget, Summary of the Facts is available to download here. The full summary is also available online via the links at the bottom of this page.
Commentary
George Osborne delivered his 8th budget as Chancellor and his 2nd as part of the full Conservative Government. It included some good news for savers and first time buyers as well as small businesses and entrepreneurs.
The creation of a new Lifetime ISA is good news for those wanting to save to make their way onto the property ladder as well as those wanting to save for retirement. It means that anyone aged between 18-40 will be able to save up to £4,000 a year and for every £4 saved before your 50th birthday the Government will put in £1. The accounts will be available from April 2017. Money put into this account can be saved until you are over 60 and the money can be accessed at any time.
The Government has also lifted the annual tax-free savings limit that can be saved into all ISAs from £15,240 to £20,000. This will apply from April 2017.
Overall the announcements in this budget were positive for small businesses with the emphasis on lowering tax, business rate reform and making provision to support the next generation of entrepreneurs, although we will have to wait to see how this will specifically impact on businesses in Northern Ireland. There was also good news with a continuing freeze on fuel duty.
Whilst there was an announced reduction in Capital Gains Tax for both higher and basic rates, residential properties will continue to incur tax at the current rates.
To show support of the ‘sharing economy’ two new tax free allowances of £1,000 will be introduced from April 2017 and will apply to those selling goods or providing services and for those earning income from property they own.
The Chancellor reaffirmed his desire to ensure action is taken against tax avoidance, specifically by targeting disguised remuneration.
On a local front there were a few significant announcements, including the confirmation of the devolution of power to set the Corporation Tax Rate, commitment to development of the Enterprise Zone in Coleraine and the provision of an Air Ambulance Service for Northern Ireland.
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