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RUTH DOOLEY, TAX PARTNER FOR HAZLEWOODS, OFFERS AN INSIGHT INTO THE RECENT BUDGET
Ruth Says: “It was quite a good budget for small businesses, probably at the expense of larger businesses. There were 50 changes in all.”
Here are a few of Ruth’s highlights:
Business Rates: Mr Osborne extended the small business relief from £6,000 to £12,000 which will take around one third of commercial premises out of the business rates commitment.
Personal Tax: The tax free personal allowance will rise to £11,500 in April 2017 heading closer to the pledged £12,500 from its 2015/16 rate of £10,600. The higher threshold will increase to £45,000.
Capital Gains: This was unexpected – the higher Capital Gains tax rate was slashed from 28% to 20%.
Corporation Tax: This will be cut to 17% by 2020 rather then the originally planned 18%.
Director Borrowing: from April the rate of tax charged on directors’ loans will rise from 25% to 32.5%.
Big Businesses: there were various measures around international businesses with the ‘Business Tax Roadmap’ introduced. This is all about the work going on around international taxation and trying to tackle the shifting of profits to low tax countries.. The aim is to tax companies in the geographical area in which they earn their money and it is all part of an ongoing consultation in this area.
Ruth Dooley is Tax Partner at Cheltenham Chamber of Commerce member company Hazlewoods