Despite the controversy, the 2016 Budget set out some interesting proposals affecting both individuals and businesses. John Spencer of Spencer Maynard Wealth Management in Battle summarises some key points:
The Chancellor revealed a package of business tax measures, announcing that in England the Small Business Rate Relief threshold will rise from £6,000 to £12,000 from April 2017.
Meanwhile, for individuals, building on the recent announcement of a new Help to Save scheme, the Chancellor unveiled a new Lifetime ISA, which is intended to allow adults aged under 40 the opportunity to save up to £4,000 a year towards buying their first home (up to a limit of £450,000) or to save towards their retirement, and which the Government will top up by 25%.
Other key announcements on personal taxation included the next step in the Government’s drive to increase the income tax personal allowance, which will rise to £11,500 from April 2017, at which time the threshold for higher rate tax will also rise to £45,000.
Capital gains tax rates will also be cut, with the headline rate falling from 28% to 20% and the basic rate from 18% to 10% with effect from 6 April 2016.
Other significant measures include additional investment in the nation’s infrastructure, further measures towards the ‘devolution revolution’ and plans to turn every school in England into an academy.
ISA’s form an important part of an individual’s financial planning, and with the new announcements, John welcomes the chance to speak to anyone seeking advice.
Find out more about Spencer Maynard Wealth Management at: www.spencermaynardwm.co.uk
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