There were lots of measures announced in the Budget 2016 but here are some of the highlights for small business owners:
- Corporation Tax rate is being cut to 17% by 2020
- Entrepreneur’s Relief rules were amended. Full details are here.
- Stamp Duty for small businesses – The stamp duty system for commercial property is being overhauled which introduces a zero rate band on commercial property valued up to £150,000. You will pay 2% on the next £100,000 and 5% over £250,000. This comes into affect on 16th March 2016.
- Business Rate Relief Threshold increased to £15,000.
- The first 1,000 of income received from selling services or renting property online will be tax free.
- Class 2 National Insurance Contributions will be removed by 2018.
- Lifetime ISAs will be introduced for those under 40 to help with buying your first home or pension planning.
If you would some advice as to how the changes made in the budget affect you, simply get in touch and we would be pleased to help.