- News

Breaking News from the Chancellor’s 2016 Budget

Key highlights

  • Growth of 2% forecast for 2016. Down from 2.4% in November’s Autumn Statement.
  • A million jobs forecast to be created by 2020.
  • Inflation of 0.7% forecast for 2016.
  • Headline rate of corporation tax to fall from 20% to 17% by 2020.
  • Annual threshold for small business tax relief to be raised from £6,000 to £15,000.
  • Supplementary charge for oil and gas producers to be halved from 20% to 10%.
  • New rail lines including Crossrail 2 in London and the HS3 link between Manchester and Leeds get green light.
  • £230m earmarked for road improvements in the north of England.
  • Tolls on Severn River crossings halved by 2018.
  • Fuel duty frozen for the sixth year running.
  • Commercial stamp duty 0% rate on purchases up to £150,000, 2% on next £100,000 and 5% top rate above £250,000. New 2% rate for high-value leases with net present value above £5m. Effective from midnight.

Other Points

  • Anti-tax avoidance and evasion measures to raise £12bn by 2020
  • £9bn to be raised by closing corporate tax loopholes and tax minimisation schemes
  • Use of “personal service companies” by public sector employees to reduce tax liabilities to end
  • Cutting capital gains tax from 18% to just 10% for basic rate tax payers
  • £700 million for flood defence schemes

Share article:

Media Contact

Suhale Vorajee
Head of Marketing and Communications
BNP Paribas Leasing Solutions UK

T: 01179 100 895
E: click here

BNP Paribas Leasing Solutions UK Linkedin