Personal Tax
Extending entrepreneurs’ relief is anticipated to promote investment in unlisted trading companies. New shares allotted worth up to £10m purchased on or after 17 March will be able to benefit from relief on the basis they are held for at least three years from the 6 April 2016.
Capital Gains Tax Rates Revised
2015/16 |
2016/17 |
|
Higher & Additional Rates |
28% |
20% |
Basic Rates |
18% |
10% |
Lifetime ISA introduced
Savers under 40 years old can benefit from the announcement of a Lifetime ISA.
The government will contribute £1 to every £4 saved until the save reaches he age of 50.
There will be a saving allowance of £15,000, which will be increased to £20,000 from 6 April 2017.
Class 2 NICs abolished
Self-employed workers will no longer have to pay Class 2 NICs from April 2018. This decision comes from an effort to simply taxes since it was generating very little government revenue.
Personal Service Companies
If you self-employed, a restriction on “off-payroll” workers in the public sector. In accordance to changes in tax rules, employers will now be responsible to pay tax rather than the HMRC.
If you work full time the government is to constrict the taxation of termination payments in order to prevent “manipulation”. Severance packages of more than £30,000 subject to income tax will also be subject to employer’s NICs.
“The extension of entrepreneurs’ tax relief to unlisted trading shares should encourage further investment in smaller businesses. An interesting progress for businesses that do not qualify for Enterprise Investment Scheme.
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