Spring has officially sprung! Read the latest on the Spring Budget
George Osborne has delivered his eighth Budget and sparked controversy by warning of the risks to the UK economy of EU exit. He said the UK was “well placed” to handle a “dangerous cocktail” of global economic risks if “we act now so we don’t have to pay later”. Labour have said it is a budget with “unfairness at its very core”. What do you think? Here’s some of the key points from the Spring Budget.
• Corporation tax to be reduced by April 2020 to 17%
• Business Rates cut – threshold increased from 6k to 15k
• Capital Gains Tax cut from 18% to 10% for basic rate tax payers
• Class 2 NIC scrapped
• ISA limit increased to £20k
• Lifetime ISA to be introduced from April 17 – under 40’s can save up to £4000 per year and government will match £1 for every £4 saved, up to age 50 and no tax when withdrawn
• Personal Allowance £11,500 for 17/18
• Higher rate threshold £45,000 for 17/18
• Sugar tax on soft drinks industry from 2018
Mr Osborne announced £3.5bn in extra spending cuts by 2020 to help meet his financial targets, which he admitted had slipped in the four months since his Autumn statement, due to sluggish growth. He said the £530m raised by a tax on the makers of sugary drinks would be spent on doubling the funding of primary school sports. The levy will be introduced in two years’ time, to give companies time to adapt products to reduce their sugar content. The duty on fuel has been frozen, but there is a 2% increase in tax on cigarettes, with 3% on rolling tobacco, from 6pm today. Beer and cider duty will be frozen as will the levy on whisky and other spirits.
Does this affect you and your business? Do you have any concerns over how it could possibly affect your business? Email any questions you might have to [email protected]