Posted March 22, 2016
What the 2016 budget means for small businesses
The latest budget was billed as the budget for “the next generation”, but there was plenty of good news for small business owners too, here are a few of the headline points.
Following significant lobbying from small business groups, George Osborne announced that from next April, the rate at which small business rates relief applies would increase from a rateable value of £6,000 to £15,000 a year. This increase means that 600,000 small businesses will pay no rates at all and a further £250,000 would see their rates reduced.
A range of measures was announced to stop multinational companies manipulating the tax system and avoiding payment. At the same time, he announced that corporation tax would be reduced to 17% by April 2020 benefitting approximately one million companies.
Stamp duty on commercial property has also been reformed, bringing it in line with the changes to residential system made in 2014. From 17 March 2016 no stamp duty will be paid on property purchases below £150,000, 2% on £150,000-£250,000 and a top rate of 5% thereafter.
Capital Gains Tax
The top rate of capital gains tax has been reduced from 28% to 20% and basic rate from 18% to 10% (this reduction does not apply to residential property). This change will be effective from the start of the new tax year and will apply to the sale of equity in businesses.
For our detailed budget report, click here.
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