In his eighth Budget as Chancellor, George Osborne delivered a very business focused agenda.
Mazars summarises the main points affecting personal and business taxation:
• From April 17, 40% threshold raised from £42,385 to £45,000 and tax free personal allowance raised to £11,500.
• From April 16, CGT headline rate to be cut from 28% to 20% and from 18% to 10% (basic rate taxpayers).
• We already knew about restrictions on pension relief and the new dividend tax which gives a 6% increase in effective tax rates.
• Headline rate of CT (now 20%) to 17% by 2020
• Tax rate increase for directors' loan accounts. These have historically been taxed at 25% but will now be taxed at 32.5%.
Pamela Chatterjee, Senior Tax Manager at Mazars LLP, commented:
"The reduction in corporation tax rates and the reduction in capital gains tax are both, no doubt, good for SME's and business owners. The lowering of CGT rates is interesting as the disparity between income tax and capital tax rates can encourage tax motivated behaviours."
Pamela would be delighted to take any queries you may have on yesterday's Budget on 020 820 8661 4419 or by email: email@example.com