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Here is every important business announcement from the Budget 2016

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What do the measures mean for business?

Describing this year’s statement to Parliament as the “Budget that backs small business”, George Osborne announced a raft of changes to tax and incentives for small and medium-sized businesses.

The chancellor began by outlining forecasts by the Office for Budget Responsibility, which had been revised down.

 

Then he moved on to announcing his Budget. Here is a quick roundup of the main measures, with a focus on what it all means for business:

In order to “level the playing field which has been tilted against our small firms” Osborne announced:

–          The closure of loopholes which allow foreign businesses to use eBay and Amazon to sell goods they are storing in the UK, to avoid VAT and undercut British businesses

–          A tax break for 500,000 micro-entrepreneurs

–          Increasing Business Rates relief from April next year – from £6,000 to £15,000, and from £18,000 to £51,000 for the higher rate. 600,000 small businesses will pay none

–          Cut to “distorted and unproductive” corporation tax to 17% by April 2020

–          “Radically” simplify business rates and switch to CPI from RPI from 2020

–          Tax free personal allowance to rise to £11,500

–          An increase in the 40p tax threshold to £45,000 from April 2017 and £42,385 from this April

–          Increase in ISA limit to £20,000

–          New Lifetime ISA to help young people safe for home or retirement for £4,000. The government will match every £4 with £1

–          About £1bn of tax cuts to the oil and gas industry by cutting the supplementary charge on oil and gas from 20% to 10%

–          £730m for renewables backing

–          Flood defences funding increase by raising the standard rate of insurance premium tax by 0.5% – people effectively paying for their own flood defences

–         A tax on sugary drinks will raise £520m in 2018/19 then 455m in 2020/21. It will reduce because firms will change the recipe of drinks, according to Osborne. Small firms are exempt



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