Encouragement of savings and investment is a key feature
The Lifetime Investment Savings Account (ISA) will be available to under-40s from April 2017. There will also be an increase in the general ISA contribution ceiling to £20,000 in 2017/18.
Our full summary of the key announcements can be found HERE
Some other headlines:
- Capital gains tax (CGT) rates will fall from 2016/17 to 20% and 10%, although the current rates of 28% and 18% will continue to apply to residential property (another buy-to-let attack) and carried interests. There will be a new entrepreneurs’ relief (effectively 10% CGT) for external long term investors in unlisted companies.
- A restructuring of stamp duty land tax (SDLT) on commercial properties will bring the structure (but not rates) into line with residential property SDLT and raise additional revenue.
- Two new £1,000 tax allowances for property income and trading income, starting in April 2017.
- An increase in the income tax personal allowance for 2017/18 to £11,500 and the higher rate threshold to £45,000.
- The abolition of Class 2 National Insurance contributions for the self-employed from April 2018 and, from the same date, the imposition of employer National Insurance contributions on taxable termination payments over £30,000.
If you have any questions, please call us: 01372 371137