The Budget in Brief

The Budget in Brief

On 18th March, Chancellor of the Exchequer, George Osborne, delivered his last Budget before May’s General Election. Here are some of the headlines.

– Income Tax Personal Allowance rises to £10,800 in 2016/17

– Higher rate threshold will rise to £43,300 in 2017/18

– Transferable tax-allowance for married couples raised to £1,100

– Corporation Tax reduced to 20%

– Self-employed Class 2 National Insurance contributions abolished in next Parliament

– Employer’s National Insurance contributions abolished for under-21s

– Tax-free personal savings allowance of £1,000 pa from Apr 2016 for basic-rate payers (£500pa for higher-rate payers)

– Withdrawals from ISAs to retain status if replaced in-year

– New ‘Help to Buy ISA’ with Government adding £50 (max £3,000) for every £200 saved by prospective new home buyers

– Access to value in existing annuities from April 2016

– Lifetime allowance for pension contributions cut from £1.25m to £1m in April 2016, with transitional protection

– National Debt, as a % of GDP, to drop to 71.6% by 2019/20

– Government borrowing, at £150bn in 2010,to become a surplus of £23bn by 2019/20

– GDP forecast to be 2.5% in 2015

– Petroleum Revenue Tax on older fields reduced from 50% to 35%

– Alcohol Tax: Beer down 1p a pint, cider down 2p a pint, spirits down 2%

– Diverted profits tax on multi-national companies to raise £3.1bn