One of the main themes of the Chancellor’s March 2016 Budget was to ensure that the next generation inherits a strong economy, is better educated, and grow up fit and healthy. His proposed “sugar tax” on the soft drinks industry will be used to fund longer school days for those that want to offer their pupils a wider range of activities, including extra sport.
He again stressed his prudence in concentrating on debt repayment and the importance of “mending the roof while the sun shines”, although he acknowledged that there were numerous factors that could impact on his “bullish” growth forecasts and promises of future budget surpluses.
There will be further changes affecting savers and he hinted that there could be yet further changes to pensions, but not for the time being.
The Budget also addressed the following key areas:
• Personal Allowances
• Income Tax Bands
• Further Changes to ISAs
• Pension Allowances Reduced
• £1,000 Savings Income Tax Free 2016/17
• New Dividend Rules Start 6 April 2016
• 32.5% Tax on Loans to Participators from 6 April 2016
• Capital Tax Rates
• Further Changes to CGT Entrepreneur’s Relief
• Lower Corporation Tax Rates
• £1,000 Tax Free for ‘Micro-Entrepreneurs’
• New Corporate Tax Loss Rules
• Interest Relief Restricted for Multi-National Companies
• SDLT Changes
• Tax Relief on Small Donations to Charity Increased to £8,000
• VAT Registration Limit £83,000