In Detail: The Budget Report 2016 | AAG Wealth Management

In Detail: The Budget Report 2016

Posted: March 17, 2016

Chancellor George Osborne has now delivered his much-anticipated Budget, only the second by an all-Conservative government in two decades. With a less positive economic backdrop than in his Summer Budget – but a commitment to move the public finances into the black within five years – he has set out the governement’s agenda to help balance the books, and boost productivity and growth.

You can read our full Budget Report 2016, which sets out the main changes, key facts and figures, and useful tips for your financial planning.

 

In Summary

Some of the key points of the Budget are:

  • 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.
  • 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.
  • An increase in the personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.
  • An extension of entrepreneurs’ relief to cover long term external Investors in unlisted companies.
  • Two new £1,000 tax allowances for property income and trading income, starting in April 2017.
  • A cut in the corporation tax rate to 17% in 2020 and greater flexibility in the use of tax losses by similar companies.
  • A restructuring of stamp duty land tax on commercial properties.
  • A major revamp of business rates, permanently doubling the small business rate relief.
  • The abolition of Class 2 National Insurance contributions for the self-employed from 6th April 2018.

Regards of Budget reforms, tax payers need to ensure that they are making maximum use of available allowances, reliefs and other planning measures to help achieve their financial goals. And, despite the changing pensions landscape, the stark truth is most people are still not putting enough aside for the retirement they want.

Please get in touch if you would like more information or to review your financial arrangements in the light of the Chancellor’s announcements.

If you’d like to discuss how the budget personally affects you, and review your financial plans accordingly, please do contact your AAG Wealth Manager.

> Read the full Budget Report 2016 here…

 

The information contained is correct as at the date of the article. The information contained does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations. Where the opinions of third parties are offered, these may not necessarily reflect those of AAG.

Alexander Associates Group (AAG) is a holistic Wealth Management group and provider of a wide range of complementary services. The wealth management advice, for both individuals and corporates, is provided by AAG Wealth Management, a Principal Partner Practice of St.  James’s Place Wealth Management. Other services offered by AAG fall outside of wealth management advice and are separate and distinct to the services offered by St. James’s  Place. They are not covered by the St. James’s Place guarantee*, which is solely reserved  for wealth management advice provided by representatives of AAG Wealth Management.

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